Japanese Market Significantly Higher

The Japanese stock market is significantly higher on Monday, recouping the losses in the previous two sessions, with the Nikkei 225 just below the 28,300 level, following the mixed cues from Wall Street on Friday, with gains across most sectors as traders picked up stocks at a bargain after last week's sell-off. Meanwhile, traders remain concerned about the spike in domestic coronavirus cases, with Japan topping 20,000 daily new cases for the third straight day.

The benchmark Nikkei 225 Index is up 166.07 points or 0.59 percent at 28,290.35, after touching a high of 28,449.99 earlier. Japanese shares ended sharply lower on Friday.

Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is gaining more than 2 percent and Toyota is adding 1.5 percent.

In the tech space, Advantest and Screen Holdings are gaining more than 2 percent each, while Tokyo Electron is adding more than 1 percent. In the banking sector, Sumitomo Mitsui Financial is gaining almost 1 percent, Mizuho Financial is edging down 0.2 percent and Mitsubishi UFJ Financial is adding almost 2 percent.

The major exporters are mixed, with Panasonic is gaining almost 1 percent, Sony is edging up 0.3 percent, while Canon is edging down 0.5 percent and Mitsubishi Electric is flat.

Among the other major gainers, Shinsei Bank, Inpex and Shimizu are gaining more than 4 percent each, while NHI Foods and Astellas Pharma are adding almost 4 percent each. Tokyu Fudosan is up more than 3 percent, while Yokohama Rubber, Fujitsu, Obayashi, Bridgestone, Taisei, T&D Holdings, Alps Alpine, Hitachi Zosen and Kajima are up almost 3 percent each.

Conversely, there are no major losers.

In the currency market, the U.S. dollar is trading in the mid-114 yen-range on Monday.

On Wall Street, stocks moved back to the upside during trading on Friday following the pullback seen in the previous session. The major averages fluctuated in morning trading but climbed more firmly into positive territory in the afternoon.

The major averages moved higher going into the close, with the Dow and the S&P 500 reaching new highs for the session. The Dow rose 216.30 points or 0.6 percent at 35,970.99, the Nasdaq climbed 113.23 points or 0.7 percent to 15,630.60 and the S&P 500 jumped 44.57 points or 1 percent to 4,712.02.

Meanwhile, the major European markets moved to the downside over the course of the session. While the U.K.'s FTSE 100 Index fell by 0.4 percent, the French CAC 40 Index and the German DAX Index edged down by 0.2 percent and 0.1 percent, respectively.

Crude oil futures settled higher Friday on easing worries about the Omicron coronavirus variant's impact on global economic growth. West Texas Intermediate Crude oil futures for January ended higher by $0.73 or 1 percent at $71.67 a barrel. WTI crude futures gained 8.2 percent in the week, the best weekly returns since end August.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT