The Japanese stock market moved higher on Friday with investors picking up stocks on hopes the economy is improving fairly well. A weaker yen also contributed to the positive sentiment.
However, with a section of traders choosing to take some profits ahead of release of industrial output data for January, the market has pared some of its gains now.
The benchmark Nikkei 225 index, which rose to 10,777.5, is currently trading at 10,708, up 43 points or 0.4% over its previous close. The index had ended up 101 points or 0.96% at 10,664.95 on Thursday.
Buoyed by a good show by financial stocks on Wall Street overnight, the Japanese megabank stocks are trading firm.
Suzuki Motor Corp. shares edged higher on reports Volkswagen AG Chairman said the two automakers will flesh out their joint projects from next week.
Shares of Takara Bio moved up sharply following an announcement by the company that it has signed a contract with the University of Pennsylvania to jointly develop a generic anti-HIV treatment.
Sumitomo Chemicals, Hino Motors, Fuji Heavy Industries, Nippn Sheet Glass, Nissan Motor, Fast Retailing and Chughai Pharma are trading higher. Clarion, Nippon Oil, Mitsui Chemicals, Nippon Light Metals,Sony Corp., Toshiba, Mizuho Trust & Banking and Chiba Bank are among the prominent losers.
In the currency market, the U.S. dollar traded in the upper 90 yen level in early deals in Tokyo. The yen is currently trading at 90.62 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Shanghai and Singapore are trading higher, while New Zealand, South Korea and Taiwan are trading flat. Malaysia is down with a modest loss. Markets across the region had closed mostly higher on Thursday.
On Wall Street, stocks broke into positive territory during the fag end of the session on Thursday and ended moderately higher. The major averages all saw notable upside late in the day, closing at their session highs.
The Dow gained 44.5 points or 0.4% to end at 10,611.8, the Nasdaq advanced by 9.5 points or 0.4% to 2,368.5 and S&P 500 ended up 4.6 points or 0.4% at 1,150.2.
Major European markets ended lower on Thursday. The U.K.'s FTSE 100 index and the French CAC 40 index both ended lower by 0.4%, while the German DAX index edged down by 0.1%.
Oil prices ended flat on Thursday amid uncertainty over demand outlook, as traders were caught in a trade-off between Chinese policy-tightening fears and OPEC's upward revision of oil demand growth forecast. Light, sweet crude oil for delivery in April settled US$0.02 higher at US$82.11 per barrel in the New York Mercantile Exchange.
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