Japanese Market Marginally Higher

Japanese stock market is marginally higher after giving up some of the early gains on Monday, extending the gains of the previous session, with the Nikkei 225 falling just below the 29,000 mark, following the broadly positive cues from Wall Street on Friday. However, the upside is capped as traders fret about the extended COVID-19 state of emergency until June 20 in several major areas.

The benchmark Nikkei 225 Index is gaining 46.10 points or 0.16 percent to 28,987.62, after touching a high of 29,241.20 in early deals. Japanese shares ended modestly lower on Friday.

Market heavyweight SoftBank Group is gaining almost 1 percent, while Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is losing more than 1 percent, Toyota is edging down 0.4 percent, Nissan Motor is declining almost 3 percent and Mazda is down almost 1 percent.

The major exporters are mixed, with Canon gaining almost 1 percent and Mitsubishi Electric flat, while Sony and Panasonic are losing more than 1 percent each.

In the tech space, Advantest is losing almost 1 percent and Screen Holdings in edging down 0.3 percent, while Tokyo Electron is gaining almost 1 percent. In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing more than 1 percent each, while Mizuho Financial is down almost 1 percent.

Among the other major gainers, Konami Holdings is gaining almost 6 percent, Olympus is adding almost 5 percent and Kawasaki Kisen Kaisha is up more than 4 percent, while TDK and Taiyo Yuden are rising almost 3 percent each. Nippon Yusen, Nexon, Mitsui O.S.K. Lines, Ricoh, Takara Holdings and Nissan Chemical Corp. are all up more than 2 percent each.

Conversely, JFE Holdings is losing more than 6 percent, Nippon Steel is down more than 5 percent and Kobe Steel is declining almost 5 percent, while Komatsu and Mitsubishi Motors are dropping almost 4 percent each. Kawasaki Heavy Industries, Hitachi Construction Machinery and Japan Steel Works are down more than 3 percent.

In economic news, Japan will see preliminary April figures for its leading and coincident economic indexes; in March, their scores were 102.5 and 93.0, respectively.

In the currency market, the U.S. dollar is trading in the mid-109 yen-range on Monday.

On Wall Street, stocks showed a strong move to the upside during trading on Friday as traders reacted to the Labor Department's closely watched monthly jobs report. With the upward move, the major averages ended the session at their best closing levels in a month.

The major averages all closed firmly in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq jumped 199.98 points or 1.5 percent to 13,814.49, the S&P 500 advanced 37.04 points or 0.9 percent to 4,229.89 and the Dow rose 179.35 points or 0.5 percent to 34,756.39.

Meanwhile, the major European markets all showed modest moves to the upside on the day. While the German DAX Index rose by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both crept up by 0.1 percent.

Crude oil prices moved higher Friday amid rising hopes for increased demand and the recent OPEC decision to gradually increase crude output. West Texas Intermediate Crude oil futures for July ended up $0.81 or 1.2 percent at $69.62 a barrel, the highest settlement since October 2018.

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