Riding on the strength of key bank stocks, the Japanese stock market is trading firm on Wednesday. Though Wall Street ended lower overnight, the mood is fairly positive in Tokyo following major banks getting a breather of sorts, thanks to the delay in enforcement of stricter capital requirement norms.
The benchmark Nikkei 225 index, which rose to 10,222.2 in early trades, is currently up 89.5 points or 0.89% at 10,173.
Bank stocks are trading higher on reports the Basel Committee on Banking Supervision agreed to delay implementation of stricter capital requirements for large banks and to give them a transition period of at least ten years.
Construction, electric power, marine transport and rubber products stocks are the other notable gainers. Shipbuilders, steel, non-ferrous metals and manufacturing stocks are mostly trading mixed.
Shares of NEC Electronics Corp. moved higher following the company's announcement that it has signed a merger agreement with Renesas Technology Corp.
Shares of property developers are in demand once again on speculation that real estate investment in central Tokyo will see a sharp rise in the near term.
In economic news, an index measuring tertiary industrial activity was up 0.5% to 96.8 in October compared to the previous month, the Ministry of Economy, Trade and Industry said on Wednesday. The rise was exactly in line with analyst forecasts, following the 0.5% monthly decline in September. Individual components finishing higher included communications, retail, energy, transportation and learning support. Scientific research, personal services, real estate and financials finished lower, while health care was unchanged.
In the currency market, the U.S. dollar traded in mid 89 yen level in early Tokyo deals. The yen is currently trading at 89.53 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Shanghai, South Korea and Malaysia are exhibiting weakness, while New Zealand and Singapore are trading higher. Australia is trading flat. Markets across the region had closed mostly lower on Tuesday.
On Wall Street, stocks fell by moderate margins on Tuesday, as traders reacted negatively to a batch of largely disappointing economic data. The major averages all closed in negative territory, pulling back off of the more than one-year closing highs set in the previous session.
The Dow ended lower by 49 points or 0.5% at 10,452, the Nasdaq declined by about 11 points or 0.5% to 2,201 and the S&P 500 closed with a loss of 6.2 points or 0.6% at 1,107.9.
Major European markets turned in a mixed performance on Tuesday. The U.K.'s FTSE 100 index lost 0.6%, while the French CAC 40 index and the German DAX index edged up by 0.1% and 0.2% respectively.
Crude oil snapped a nine-session losing streak and ended higher by US$1.18 at US$70.69 on Tuesday.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.