The Japanese stock market is trading notably higher on Wednesday with a stronger U.S. dollar and the overnight positive close on Wall Street triggering some hectic buying almost across the board. Investors appear to be betting on expectations of additional stimulus from the central bank as well.
The benchmark Nikkei 225 index is trading at 15,544.5, up 163.5 points or 1.1 percent from its previous close.
Mitsubishi Motors Corp. is up with a hefty gain of 35 percent. Kobe Steel is trading nearly 19 percent up. GS Yuasa, Mitsubishi Paper Mills, Tokuyama Corp., Tokyo Electric Power, Furukawa, Sumitomo Corp., Pacific Metals, Nippon Sheet Glass and Nisshin Steel Holdings are up 10 to 17 percent.
Sony Corp. (SNE) shares zoomed 12 percent on reports the company's board is likely to discuss spinning off its entertainment unit.
Shares of Sojitz Corp. jumped nearly 20 percent on reports of a likely 30 percent rise in the company's pretax profit for the next financial year. The stock gave up some gains subsequently and is currently trading 11 percent up from its previous close.
Mitsui Chemicals, JFE Holdings, Mitsumi Electric, Mitsubishi Materials, Chubu Electric Power, Nippon Soda, Sumco Corp., Fuji Heavy Industries, JX Holdings, Olympus Corp., Casio Computer and Panasonic Corp. (PC) are all trading higher by 3 to 7 percent.
Meanwhile, Nippon Electric Glass, Japan Steel Works, Ebara Corp., Tokyo Electron, Japan Tobacco, Daiwa House Industry, Yokohama Rubber, Yahoo Japan and Advantest Corp. (ATE) are trading weak, losing 2 to 5 percent.
On the economic front, Japan saw a merchandise trade deficit of 879.936 billion yen in April, the Ministry of Finance said on Wednesday. That missed forecasts for a shortfall of 620.6 billion yen following the downwardly revised deficit of 364.0 billion yen in March.
Exports were up 3.8 percent on year, also missing forecasts for a gain of 5.4 percent after adding 1.1 percent in the previous month. Imports climbed an annual 9.4 percent versus expectations for 6.9 percent following the 5.6 percent gain a month earlier.
Meanwhile, the Bank of Japan is scheduled to conclude its monetary policy meeting later in the day and then announce its decision on interest rates. The BoJ is widely expected to hold rates at 0.10 percent, although some additional stimulus may be introduced.
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 102.56 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Malaysia, New Zealand, Singapore, South Korea and Taiwan are trading notably higher, while Australia, Hong Kong and Indonesia are trading weak.
On Wall Street, stocks moved modestly higher on Tuesday, although buying interest was somewhat subdued.
The major averages gave back some ground in late-day trading but remained in positive territory. The Dow ended the day up 52.3 points or 0.3 percent to 15,387.6, a new closing high. The S&P 500, which too hit a new closing high, settled at 1,669.2, gaining 2.9 points or 0.2 percent, while the Nasdq moved up 5.7 points or 0.2 percent to 3,502.1.
Major European markets too ended higher on Tuesday. The U.K.'s FTSE 100 index advanced by 0.7 percent, while the French CAC 40 index and the German DAX index edged up by 0.3 percent and 0.2 percent, respectively.
U.S. crude oil snapped a four-day winning streak to end lower on Tuesday, ahead of the Federal Open Market Committee policy meet outcome, even as the dollar strengthened against a basket of major currencies. Crude for July delivery ended down $0.75 or 0.8 percent at $96.18 a barrel on the New York Mercantile Exchange.
For comments and feedback contact: editorial@rttnews.com
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.