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Japanese Market Notably Higher

The Japanese stock market is notably higher on Monday, extending gains from Friday, following the positive cues from Wall Street as upbeat U.S. jobs data helped offset concerns over U.S.-China trade tensions.

The benchmark Nikkei 225 Index is adding 213.84 points or 0.98 percent to 22,001.98, off a high of 22,027.95 earlier.

The major exporters are mostly higher despite a stronger yen. Sony is rising more than 2 percent, while Mitsubishi Electric and Canon are advancing almost 1 percent each. Panasonic is declining almost 1 percent.

Automakers Toyota is adding 1 percent and Honda is rising 0.2 percent. In the banking sector, Mitsubishi UFJ Financial is gaining 3 percent and Sumitomo Mitsui Financial is advancing 0.5 percent.

Among oil stocks, Inpex is adding more than 1 percent and Japan Petroleum Exploration is higher by almost 2 percent after crude oil prices rose more than 1 percent on Friday.

Among the market's best performers, Eisai Co. is rising more than 16 percent, extending strong gains from Friday. Taiyo Yuden is higher by almost 7 percent and TDK Corp. is advancing almost 4 percent.

On the flip side, Hitachi Construction Machinery is losing more than 4 percent and Otsuka Holdings is declining almost 3 percent. Tokai Carbon and Komastu are declining more than 2 percent each.

In economic news, the Bank of Japan said that overall bank lending in Japan was up 2.2 percent on year in June, coming in at 524.847 trillion yen. That follows the 2.0 percent gain in May.

Japan will also release May figures for current account as well as June numbers for the eco watchers survey today.

In the currency market, the U.S. dollar is trading in the lower 110 yen-range on Monday.

On Wall Street, stocks closed higher on Friday as traders assessed a relatively upbeat jobs report that showed employment in the U.S. increased more than expected in June, although the unemployment rate also rose after temporary school jobs ended for the summer. The jobs data helped offset worries about trade tensions between the U.S. and China.

The Dow Jones Industrial Average gained 99.74 points or 0.41 percent to 24,456.48, the S&P 500 rose 23.21 points or 0.85 percent to 2,759.82 and the Nasdaq Composite Index added 101.96 points, or 1.34 percent, to 7,688.39.

The European markets ended with modest gains on Friday after staging a late recovery. The DAX of Germany climbed 0.26 percent and the CAC of France rose 0.18 percent. The FTSE 100 of the U.K. gained 0.19 percent.

Crude oil prices rose Friday after the U.S. oil rig count unexpectedly climbed last week. WTI crude gained $0.86 or 1.2 percent to $73.80 a barrel on the New York Mercantile Exchange.

by RTTNews Staff Writer

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