The Japanese stock market opened higher on Thursday and the Nikkei rose to 15,155, its highest level since late December 2007, as stocks moved up in early trades, buoyed by an encouraging GDP report and the overnight gains on Wall Street.
However, the market retreated swiftly, with a stronger yen triggering a sell-off at several counters. The benchmark Nikkei 225 index, which tumbled to 15,006, and is currently trading at 15,035.6, down 60.4 points or 0.4 percent from its previous close.
Nippon Paper Industries, Denki Kagaku, Sumitomo Mitsui Trust Holdings, Marui Group, Seven & I Holdings, Furukawa and Mitsubishi UFJ Financial (MTU) are down 3 to 5 percent.
Mitsui Mining & Smelting, NTT Data Corp., Showa Denko KK, Sumitomo Mitsui Financial Group, Casio Computer, Resona Holdings, Mizuho Financial Group (MFG), Aozora Bank, Chiba Bank, Mitsubishi Motors, Softbank Corp. and Sony Corp. (SNE) are all trading lower by 1 to 2 percent.
Olympus Corp. shares are up nearly 13 percent on its better than expected earnings outlook. Tokyo Electric Power is adding 12 percent. Dai-ichi Life Insurance, Furukawa Electric and Oki Electric Industry are trading higher by 7 to 8 percent.
NTN Corp. and Tokyu Land are up 6.5 percent and 5.5 percent, respectively. Taiheiyo Cement, Isuzu Motors, Nikon Corp., Mazda Motor, Mitsubishi Materials, JFE Holdings and Sumitomo Realty & Development are up 2 to 4 percent.
On the economic front, Japan's gross domestic product was up 0.9 percent in the first quarter of 2013 compared to the previous three months, the Cabinet Office said in Thursday's preliminary report. That beat forecasts for an increase of 0.7 percent following the flat reading in the previous three months.
On a yearly basis, GDP jumped 3.5 percent - also topping expectations for a gain of 2.7 percent following the 0.2 percent increase in Q4.
Nominal GDP was up 0.4 percent on quarter, just shy of forecasts for 0.5 percent after dipping 0.3 percent in the previous quarter.
In the currency market, the U.S. dollar traded in the lower 102 yen range in early deals in Tokyo. The yen is currently trading at 102.14 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Shanghai, Malaysia, New Zealand and Singapore are trading weak, while Hong Kong, Indonesia, South Korea and Taiwan are trading in positive territory.
On Wall Street, stocks ended mostly higher on Wednesday, even as traders digested a mixed batch of U.S. economic data. While a better than expected report on homebuilder confidence in the month of May aided sentiment to an extent, an unexpected contraction in regional manufacturing activity and a drop in producer prices in April limited the market's upside.
The Dow rose 60.4 points or 0.4 percent to 15,275.7, the Nasdaq climbed 9 points or 0.3 percent to 3,471.6 and the S&P 500 advanced 8.4 points or 0.5 percent to 1,658.8.
Major European markets too ended higher on Wednesday. While the U.K.'s FTSE 100 index inched up by 0.1 percent, the German DAX index and the French CAC 40 index moved up 0.3 percent and 0.4 percent, respectively.
U.S. crude oil snapped a four-day string of losses to end higher on Wednesday, with the Energy Information Administration's weekly report showing a surprising decline in U.S. crude oil stockpile, even as gasoline inventories unexpectedly edged up last week.
Crude for June delivery ended up $0.09 or 0.1 percent at $94.30 a barrel on the New York Mercantile Exchange, after plunging to a low of $92.13 during the session.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.