Stocks surged higher in the Japanese market on Wednesday with investors indulging in some brisk buying, betting on hopes of further stimulus from global central banks. A weaker yen and some encouraging economic data from the U.S. also contributed to the buoyant start.
However, after a strong initial upmove, the market pared some gains with a section of investors choosing to take some profits.
The benchmark Nikkei 225 index hit a near 2-month high as it rose to 9,136 in early trades. The index is currently trading at 9,104, up 37.4 points or 0.4 percent from its previous close.
Oil, mining, chemicals and non-ferrous metals stocks opened on a firm note and are still mostly trading in positive territory. Pharmaceuticals, foods, automobile and financial stocks are trading mixed.
Sumco Corp, Sumitomo Heavy Industries, Inpex Corp and Chiyoda Corp are trading higher by 3 to 4 percent.
Nitto Boseki, Taiyo Yuden, Tokyo Electron, NGK Insulators and Mitsui & Co are all up by over 2 percent.
Komatsu, Fuji Heavy Industries, Sumitomo Metal Mining, IHI Corp, Mitsubishi Corp, Nissan Chemical Industries, GS Yuasa, Fuji Electric, Bridgestone Corp and Sumitomo Heavy Industries are also trading notably higher.
JFE Holdings Inc shares are down nearly 4 percent. Ajinomoto Co Inc. is trading lower by 2.2 percent. Sharp Corp, Asahi Group Holdings, Japan Tobacco, Kansai Electric Power, Resona Holdings and Sony Corp are down 1.2 to 2 percent.
Nippon Yusen KK, Mitsubishi Motors, Casio Computer, Tokyo Electric Power, TDK Corp and Hitachi Zosen are also trading notably lower.
In the currency market, the U.S. dollar traded in the upper 79 yen range in early deals in Tokyo. The yen is currently trading at 79.62 to the dollar.
Among other markets in the Asia-Pacific region, Australia, New Zealand, Singapore, South Korea and Taiwan are trading notably higher, while Shanghai, Hong Kong and Malaysia are up with modest gains.
On Wall Street, stocks moved mostly higher on Tuesday, after initially showing a lack of direction. The markets benefited from an upbeat report on factory orders as well as strong commodities prices. Nonetheless, trading activity remained relatively subdued, with traders looking to get a head start on the Independence Day holiday on Wednesday.
The major averages saw some volatility in the final hour of trading but closed firmly in positive territory. The Dow rose 72.4 points or 0.6 percent to 12,943.8, the Nasdaq advanced 24.9 points or 0.8 percent to 2,976.1 and the S&P 500 climbed 8.5 points or 0.6 percent to 1,374.
Major European markets also ended on a firm note on Tuesday. While the U.K.'s FTSE 100 index gained 0.8 percent, the French CAC 40 index and the German DAX index jumped by 1 percent and 1.3 percent, respectively.
U.S. crude oil futures ended at a six-week high on Tuesday on supply concerns, as Iran stepped up its rhetoric over the Strait of Hormuz while continuing its missile drills in the area.
Oil prices were also helped by increased risk-taking sentiment, with investors anticipating additional stimulus measures to help boost growth from the European Central Bank and other central banks. Crude for August delivery jumped $3.91 or 4.7 percent to close at $87.66 a barrel on the New York Mercantile Exchange.
by RTT Staff Writer
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