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Japanese Market Notably Higher

The Japanese stock market is notably higher on Monday, as the U.S. dollar rebounded against the yen and Japan's July core machinery orders data beat expectations. Risk appetite was also boosted after North Korea did not conduct a missile test over the weekend despite speculation that it would do so.

In late-morning trades, the benchmark Nikkei 225 Index is rising 286.64 points or 1.49 percent to 19,561.46, off a high of 19,567.03 earlier.

Among the major exporters, Sony is rising more than 3 percent, Mitsubishi Electric is advancing more than 2 percent, Canon is up more than 1 percent and Panasonic is adding almost 1 percent.

Among automakers, Toyota is adding more than 1 percent and Honda is advancing almost 2 percent. In the banking sector, Mitsubishi UFJ Financial is gaining almost 2 percent and Sumitomo Mitsui Financial is adding more than 1 percent.

In the oil space, Inpex is declining 0.3 percent, while Japan Petroleum Exploration is adding 0.2 percent.

Among the best performers, Maruha Nichiro is rising more than 5 percent, while Trend Micro and Yaskawa Electric are gaining almost 5 percent each.

In economic news, the Cabinet Office said on Monday that core machine orders in Japan surged a seasonally adjusted 8.0 percent on month in July, standing at 853.3 billion yen. That beat forecasts for an increase of 4.1 percent following the 1.9 percent decline in June.

The Bank of Japan said that the M2 money stock in Japan was up 4.0 percent on year in August, coming in at 978.0 trillion yen. That was unchanged from the July reading, although it was shy of estimates for a gain of 4.1 percent.

In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Monday.

On Wall Street, stocks closed mostly lower on Friday amid concerns about the economic impact of Hurricane Irma and worries about North Korea, which is celebrating a holiday on Saturday that could be a key date for another intercontinental ballistic missile launch.

While the Dow inched up 13.01 points or 0.1 percent to 21,797.79, the Nasdaq fell 37.68 points or 0.6 percent to 6,360.19 and the S&P 500 dipped 3.67 points or 0.2 percent to 2,461.43.

The major European markets also ended mixed on Friday. While the German DAX Index inched up by 0.1 percent, the French CAC 40 Index closed just below the unchanged line and the U.K.'s FTSE 100 Index fell by 0.3 percent.

Crude oil futures fell Friday, but held onto weekly gains as industry data showed the U.S. oil rig count dropped for a third week in four. WTI crude for October delivery plunged $1.61 or 3.28 percent to $47.48 a barrel on the New York Mercantile Exchange.

by RTT Staff Writer

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