The Japanese stock market is trading significantly higher on Monday, extending the gains in the previous session. The benchmark S&P/ASX 200 is moving above the 36,300 level to 34-year highs, following the broadly positive cues from Wall Street cues on Friday, with gains across most sectors led by index heavyweights and technology stocks.
The signs of slowing inflation for a second straight month also boosted bets the Bank of Japan will keep its ultra-low interest rates steady next week.
The benchmark Nikkei 225 Index is up 382.42 or 1.06 percent at 36,345.69, after touching a 34-year high of 36,535.36 earlier. Japanese shares ended sharply higher on Friday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.5 percent.
In the tech space, Screen Holdings is gaining almost 4 percent, Advantest is adding more than 4 percent and Tokyo Electron is up almost 2 percent.
In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.1 percent each, while Mizuho Financial is adding more than 1 percent.
The major exporters are mostly higher. Sony and Mitsubishi Electric are adding more than 1 percent each, while Canon is gaining almost 1 percent. Panasonic is edging down 0.4 percent.
Among other major gainers, M3 is surging more than 6 percent and Yamaha Motor is gaining almost 5 percent, while Mitsui Fudosan, Taiyo Yuden, Minebea Mitsumi and Sumitomo Realty & Development are adding almost 4 percent each. Lasertec, Ebara and Tokyu Fudosan are advancing more than 3 percent each, while Sumco, Sekisui House, Toppan Holdings and Murata Manufacturing are up almost 3 percent each.
Conversely, Kawasaki Kisen Kaisha is losing almost 3 percent.
In the currency market, the U.S. dollar is trading in the higher 147 yen-range on Monday.
On Wall Street, stocks moved sharply higher over the course of the trading session on Friday, adding to the strong gains posted during Thursday's session. With the continued upward move, the Dow and the S&P 500 set new record closing highs, while the tech-heavy Nasdaq reached its best closing level in two years.
The major averages all close firmly in positive territory, with the Nasdaq posting a standout gain. The Nasdaq spiked 255.32 points or 1.7 percent to 15,310.97, the S&P 500 surged 58.87 points or 1.2 percent to 4,839.81 and the Dow jumped 395.19 points or 1.1 percent to 37,863.80.
Meanwhile, European stocks finished a choppy trading session little changed. While the U.K.'s FTSE 100 closed just above the unchanged line, the German DAX Index edged down by 0.1 percent and the French CAC 40 Index fell by 0.4 percent.
Crude oil prices turned lower on Friday, reflecting profit taking after recent gains while traders also weighed concerns about Middle East tensions against uncertainty about the outlook for global demand. West Texas Intermediate Crude for February delivery fell $0.67 or 0.9 percent to $73.41 a barrel. The more actively trade March contract slumped $0.70 or 1.0 percent to $73.25 a barrel.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.