The Japanese stock market is trading higher on Tuesday with investors indulging in some buying, buoyed by a strong lead from Wall Street and a pause in the yen's rise against the greenback and the euro.
Slightly easing worries about the financial situation in Germany ahead of the European Union Summit and the Chinese government's pledge to bolster its economy are also contributing to the market's surge.
Machinery, steel, non-ferrous metals, real estate and financial stocks are trading notably higher. Electric power, foods and pharmaceuticals stocks are trading mixed.
The benchmark Nikkei 225 index is up 85.1 points or nearly a percent at 8,719.
Kawasaki Kisen, Komatsu, Oki Electric Industry, Sumco Corp, Nippon Yusen and Kubota Corp are trading higher by 4 to 5.5 percent.
Kobe Steel, Sumitomo Osaka Sement, Minebea, Fanuc Corp, Yahoo Japan, Sony Corp, Advantest Corp, Inpex, Pacific Metals, Fuji Heavy Industries, Nippon Sheet Glass, Mitsui OSK Lines and Sumitomo Metal Industries are up 2 to 3.3 percent.
In the automobile space, Nissan Motor, Mazda Motor, Isuzu Motors, Hino Motors, Honda Motor and Toyota Motor are up 1.3 to 3.3 percent. Mitsubishi Motor and Suzuki Motor are down marginally.
Among bank stocks, Bank of Yokohama, Chiba Bank, Mitsubishi UFJ Financial, Mizuho Financial, SMFG and Shinsei Bank are up 0.8 to 1.5 percent, while Aozora Bank and Shizuoka Bank are trading modestly lower.
Terumo Corp shares are down 2.3 percent. Dentsu Inc., Nippon Suisan, Nisshin Seifun Group. Nippon Telegraph, Shionogi, GS Yuasa and Chubu Electric Power are also trading notably lower.
In the currency market, the U.S. dollar traded in the lower 79 yen range in early deals in Tokyo. The yen is currently trading at 79.30 to the dollar.
Among other markets in the Asia-Pacific region, Australia, Hong Kong, New Zealand, South Korea, Singapore and Taiwan are trading notably higher. Shanghai and Malaysia are also trading firm. Markets across the region had turned in a mixed performance on Monday.
On Wall Street, stocks posted strong gains on Monday, due largely to bargain hunting after recent losses. The major averages ended the session just off their highs.
While the Dow rose 135.1 points or 1.1 percent to 12,504.5, the Nasdaq jumped 68.4 points or 2.5 percent to 2,847.2 and the S&P 500 moved up 20.8 points or 1.6 percent to 1,316.
Major European markets too surged higher on Monday. The German DAX index advanced by 1 percent, while the U.K.'s FTSE 100 index and the French CAC 40 index gained 0.7 percent and 0.6 percent, respectively.
U.S. crude oil futures ended higher on Monday, due largely to speculative buying. Crude for June delivery ended up $1.09 at 92.57 a barrel on the New York Mercantile Exchange.
by RTT Staff Writer
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