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Japanese Market Significantly Higher

The Japanese stock market is significantly higher on Tuesday, recouping some of the losses in the previous session, with the benchmark Nikkei index above the 28,300 level, following the broadly positive cues from Wall Street overnight, as traders picked stocks at a bargain after the recent virus-induced sell-off and digested reports that the new coronavirus variant would be milder than initially dreaded, though it spreads rapidly.

The benchmark Nikkei 225 Index is gaining 309.52 points or 1.11 percent to 28,236.89, after touching a high of 28,339.24 earlier. Japanese shares closed modestly lower on Monday.

Market heavyweight SoftBank Group is surging more than 7 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is edging up 0.2 percent.

In the tech space, Advantest and Tokyo Electron are gaining more than 1 percent each, while Screen Holdings is up 2.5 percent. In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are gaining almost 1 percent each.

The major exporters are mostly higher. Mitsubishi Electric is gaining more than 1 percent and Canon is advancing almost 3 percent, while Panasonic and Sony are adding almost 1 percent each.

Among the other major gainers, Marubeni is gaining almost 5 percent, while Mitsui O.S.K. Lines, Tota and Marui Group are adding almost 4 percent each. West Japan Railway, Showa Denko K.K., Mazda Motor, Tokai Carbon, Nippon Steel, Tokyu Fudosan Holdings and Mitsui Chemicals are up more than 3 percent each, while Asahi Group Holdings, Sumitomo Heavy Industries and Sumitomo Heavy Industries are advancing almost 3 percent each.

Conversely, Nippon Suisan Kaisha is plummeting almost 8 percent.

In economic news, the average of household spending in Japan was down 0.6 percent on year in October, the Ministry of Internal Affairs and Communications said on Tuesday - coming in at 281,996 yen. That was in line with expectations following the 1.9 percent annual drop in September. On a monthly basis, household spending improved 3.4 percent - shy of forecasts for an increase of 3.6 percent and down from 5.0 percent in the previous month. The average of monthly income per household stood at 549,269 yen, up 0.4 percent on year.

In the currency market, the U.S. dollar is trading in the mid-113 yen-range on Tuesday.

On Wall Street, stocks showed a strong move to the upside during trading on Monday following the rollercoaster ride seen last week. The major averages all moved notably higher on the day, with the Dow posting a particularly strong gain.

The major averages pulled back off their best levels in late-day trading but remained firmly positive. The Dow surged 646.95 points or 1.9 percent to 35,227.03, the Nasdaq advanced 139.68 points or 0.9 percent to 15,225.15 and the S&P 500 jumped 53.24 points or 1.2 percent to 4,591.67.

The major European markets also showed strong moves to the upside on the day. While the German DAX Index jumped by 1.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both surged up by 1.5 percent.

Crude oil futures settled sharply higher Monday as Saudi Arabia's Aramco hiked prices of crude exported to Asia and the U.S. and amid easing concerns about Omicron. West Texas Intermediate Crude oil futures for January surged $3.23 or 4.9 percent at $69.49 a barrel.

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