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Japanese Market Notably Higher

The Japanese stock market is notably higher on Tuesday and the safe-haven yen weakened following the overnight gains on Wall Street as upbeat U.S. housing data and hopes of more stimulus measures by the Federal Reserve offset worries about the sharp spikes in new coronavirus cases in the U.S. as well as other parts of the world.

Investors shrugged off weak Japanese economic data as well as the rising number of new coronavirus cases in Tokyo.

The benchmark Nikkei 225 Index is adding 411.23 points or 1.87 percent to 22,406.27, off a high of 22,409.28 earlier. Japanese shares closed sharply lower on Monday.

Market heavyweight SoftBank Group and Fast Retailing are advancing more than 1 percent each.

In the financial sector, Sumitomo Mitsui Financial Group is higher by almost 2 percent and Mitsubishi UFJ is adding almost 1 percent.

The major exporters are higher on a weaker yen. Panasonic and Mitsubishi Electric are rising more than 3 percent each, while Canon and Sony are adding more than 1 percent each.

In the tech space, Advantest is rising more than 2 percent and Tokyo Electron is advancing almost 2 percent. Among automakers, Honda is higher by almost 3 percent and Toyota is up more than 1 percent.

In the oil sector, Japan Petroleum is rising more than 2 percent and Inpex is adding almost 2 percent after crude oil prices rose overnight.

Among the major gainers, IHI Corp. is rising more than 5 percent, Nippon Sheet Glass is gaining 5 percent and Seiko Epson is higher by almost 5 percent.

On the flip side, J Front Retailing is lower by more than 2 percent.

In economic news, the Ministry of Economy, Trade and Industry said that industrial output in Japan plummeted 25.9 percent on year in May. That was well shy of expectations for a drop of 11.3 percent following the 15.0 percent decline in the previous month.

The unemployment rate in Japan came in at a seasonally adjusted 2.9 percent in May, missing expectations for 2.8 percent, and up from 2.6 percent in April.

In the currency market, the U.S. dollar is trading in the upper 107 yen-range on Tuesday.

On Wall Street, stocks ended on a buoyant note on Monday despite several states in the country reporting sharp spikes in new coronavirus cases over the weekend. Investors surprisingly shrugged off the report about the spread of the coronavirus, and kept picking up stocks, betting on hopes the central bank will come with more stimulus sometime in the near futures. Boeing's shares soared more than 14 percent after the company got permission to test flights using the 737 Max.

The Dow ended up 580.25 points or 2.3 percent at 15595.80, the best closing level in nearly four weeks. The S&P 500 climbed 1.5 percent to 3,053.24 and the Nasdaq advanced 1.2 percent to 9,874.15.

The major European markets also closed higher on Monday. The U.K.'s FTSE 100 climbed 1.08 percent, Germany's DAX gained 1.18 percent and France's CAC 40 advanced 0.73 percent.

Crude oil prices climbed higher on Monday despite concerns about the outlook for energy demand amid sharp spikes in new cases of coronavirus in the U.S. and several other parts across the globe. WTI crude for August rose $1.21 or about 3.1 percent at $39.70 a barrel.

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