Despite a none too positive lead from Wall Street, the Japanese stock market is trading higher on Tuesday with investors picking up some front line stocks, betting on hopes that global central banks will soon resort to some monetary easing to revive the economies.
Real estate, financial and retail stocks are mostly trading higher. Marine transport, automobile, pharmaceuticals and non-ferrous metals stocks are trading mixed.
The benchmark Nikkei 225 index, which opened marginally up from its previous close, is currently trading at 9,050, up 46.5 points or 0.5 percent.
Among the prominent gainers, Japan Steel Works, Japan Tobacco, Casio Computer and T&D Holdings Inc are up 3 to 3.5 percent.
Tokyu Land, Daiichi Sankyo, Sapporo Holdings, Unitika and Asahi Group Holdings are up 2.5 to 2.8 percent.
Mitsubishi UFJ Financial, Resona Holdings, Shinsei Bank, Nissan Chemical Industries, Mitsubishi Materials, Heiwa Real Estate, Fuji Heavy Industries, Nikon Corp, SMFG and Daiwa Securities Group are also trading sharply higher.
Kawasaki Kisen Kaisha Ltd shares are down as much as 13 percent following the company cutting its profit forecast and announcing that it will sell shares equivalent to a quarter of its market value.
Fast Retailing shares opened lower following a decline in Uniqlo sales in June. The stock is currently trading lower by about 2.5 percent.
Nippon Yusen KK, Mitsui OSK Lines, Mitsumi Electric, Kobe Steel and Hitachi Zosen are also trading notably lower.
In economic news, the monetary base in Japan was up 5.9 percent on year in June, the Bank of Japan said on Tuesday, standing at 120.214 trillion yen. That follows the 2.4 percent increase in May.
Seasonally adjusted, the monetary base soared 55.8 percent to 119.937 trillion yen. For the second quarter of 2012, the monetary base was up 2.6 percent on year.
In the currency market, the U.S. dollar traded in the mid-79 yen range in early deals in Tokyo. The yen is currently trading at 79.52 to the dollar.
Among other markets in the Asia-Pacific region, Hong Kong, South Korea and Taiwan are trading notably higher. Malaysia, Singapore and New Zealand are up marginally, while Australia and Shanghai are trading slightly weak. Markets across the region ended mostly higher on Monday.
On Wall Street, stocks showed a lack of direction over the course of the trading day on Monday and ended on a mixed note. The choppy trading on Wall Street came as traders expressed uncertainty about the near-term outlook for the markets following last Friday's rally. Some weak economic data and light trading activity ahead of the Independence Day holiday also contributed to the lackluster performance.
The Dow edged down 8.7 points or 0.1 percent to 12,871.4, while the Nasdaq rose 16.2 points or 0.6 percent to 2,951.2 and the S&P 500 crept up 3.3 points or 0.3 percent to 1,365.5.
Major European markets moved higher on Monday. The German DAX index rose 1.2 percent and the U.K.'s FTSE 100 index climbed 1.3 percent, while the French CAC 40 index jumped 1.4 percent.
U.S. crude oil futures ended lower on Monday, with investors weighing demand growth prospects on some soft economic data globally while seeking a safe haven in the dollar. Crude for August delivery dropped $1.21 or 1.4 percent to close at $83.75 a barrel on the New York Mercantile Exchange.
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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.