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Japanese Market Advances

The Japanese stock market is advancing on Tuesday despite the weak cues overnight from Wall Street, as a weaker yen boosted shares of exporters. Nevertheless, investors are cautious as they ahead to U.S. Federal Reserve Chairman Jerome Powell's congressional testimony later this week.

The benchmark Nikkei 225 Index is adding 89.29 points or 0.41 percent to 21,623.64, after rising to a high of 21,687.29 earlier. Japanese shares fell on Monday.

The major exporters are mostly higher on a weaker yen. Sony and Mitsubishi Electric are adding 0.5 percent each, while Panasonic is rising 0.4 percent. Canon is down 0.3 percent.

Among tech stocks, Advantest is unchanged and Tokyo Electron is declining 1 percent.

Shares of Apple suppliers are weak following a notable drop by shares of the tech giant overnight. Nitto Denko is lower by almost 2 percent, while Alps Alpine and TDK Corp. are declining more than 1 percent each. Nidec is losing almost 1 percent and Kyocera is down 0.6 percent.

In the oil sector, Inpex is adding almost 1 percent and Japan Petroleum is advancing more than 1 percent.

Market heavyweight SoftBank is rising more than 1 percent and Fast Retailing is higher by 1 percent. In the auto space, Honda Motor is adding 0.4 percent and Toyota Motor is up 0.1 percent.

Among the other major gainers, FamilyMart UNY is gaining almost 4 percent, Terumo Corp. is higher by more than 3 percent and JXTG Holdings is advancing almost 3 percent.

On the flip side, Yaskawa Electric and Suzuki Motor are declining more than 2 percent each, while Toray Industries, Taiyo Yuden and Mitsui Chemicals are lower by 2 percent each.

In economic news, the Bank of Japan said that the M2 money stock in Japan was up 2.3 percent on year in June, coming in at 1,029.6 trillion yen. That was shy of expectations for a gain of 2.6 percent, which would have been unchanged from the May reading following a downward revision from 2.7 percent.

The M3 money stock was up an annual 2.0 percent to 1,362.4 trillion yen - again missing forecasts for 2.3 percent, which also would have been unchanged from the previous month.

Japan will also release May numbers for labor cash earnings today.

In the currency market, the U.S. dollar is trading in the upper 108 yen range on Tuesday.

On Wall Street, stocks closed lower on Monday, partly reflecting waning optimism about a near-term interest rate cut following last Friday's much better than expected jobs data. A notable drop by Apple also weighed on the markets after Rosenblatt Securities downgraded its rating on the tech giant's stock to Sell from Neutral. Fellow Dow component Boeing also fell after Saudi Arabia's flyadeal became the first airline to officially cancel an order for the beleaguered aerospace giant's 737 MAX aircraft.

The Dow slid 115.98 points or 0.4 percent to 26,806.14, the Nasdaq slumped 63.41 points or 0.8 percent to 8,098.38 and the S&P 500 fell 14.46 points or 0.5 percent to 2,975.95.

The major European markets showed more modest moves to the downside on Monday. While the German DAX Index dipped by 0.2 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both edged down by 0.1 percent.

Crude oil futures settled modestly higher on Monday amid rising geopolitical tensions and on hopes there will some monetary easing by the Federal Reserve this month. WTI crude for August added $0.15 or about 0.3 percent to close at $57.66 a barrel.

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