The Japanese market is trading firm on Friday with investors tracking cues from Wall Street where stocks closed stronger amid easing worries about Greece and an encouraging report on Chicago-area manufacturing activity.
Financial, textiles, insurance, pharmaceuticals and automobile stocks are mostly trading higher. Marine transport and electric power stocks are trading mixed.
The benchmark Nikkei 225 index, which rose to 9,900.6 in early trades, is currently at 9,866, up 49.9 points or 0.5 percent over its previous close.
Fanuc Corp., the top gainer in the Nikkei index, is up nearly 4 percent now. Casio Computer, Dainippon Screen, Fujikura, SM Trust, T&D Holding, Mitsumi Electric and Marui Group are gaining 2 to 3 percent.
Automobile stocks Toyota Motor, Mazda Motor, Suzuki Motor and Nissan Motor are trading stronger by 1 to 2.5 percent.
Mizuho Trust & Banking, Shinsei Bank, Mizuho Trust & Banking and Mitsubishi UFJ Financial are up 1 to 1.5 percent.
Japan Steel Work, J Front Retailing, Sapporo Holdings, Nippon Light Metals, IHI, Kansai Electric Power and Oki Electric Industries are some of the prominent losers.
On the economic front, the unemployment rate in Japan came in at a seasonally adjusted 4.5 percent in May, lower than expectations for a rate of 4.8 percent after a showing 4.7 percent in April.
According to the data released by the Ministry of Internal Affairs and Communications, the number of unemployed persons in May was 2.93 million, a decline of 380 thousand or 11.5 percent on year. The number of employed persons was 60.19 million, an increase of 90 thousand or 0.1 percent on year.
According to another reports from the same ministry, core consumer prices in Japan were up 0.6 percent on year in May, unchanged from the previous month, but higher than forecasts for an increase of 0.4 percent. On month, core inflation was up 0.1 percent after adding 0.4 percent in April. Overall CPI was up 0.3 percent on year, unchanged from April, but above expectations for a rise of 0.2 percent. On month, inflation added 0.1 percent after rising 0.3 percent in April.
Meanwhile, the average household spending in Japan was down 1.9 percent on year in May, standing at 276,159 yen. That missed forecasts for a contraction of 1.7 percent on year following the 3.0 percent decline in April.
The Bank of Japan's quarterly Tankan survey showed on Friday that sentiment for its large manufacturers' index plummeted in the second quarter, showing a score of -9. That was even worse than forecasts for a score of -7 after coming in at +6 in the first quarter. The outlook for the third quarter was +2, unchanged from the previous three months and in line with expectations.
The non-manufacturing index fell to -5, missing forecasts for a score of -4 after posting a score of +3 in Q1. The outlook for the third quarter was -2 versus expectations for a 0 after showing -1 in the previous three months.
All industry capex was a bright spot, expected to rise 4.2 percent on year, well above forecasts for an increase of 2.3 percent after easing 0.4 percent in the first quarter.
In the currency market, the U.S. dollar traded at the upper 80 range in early deals in Tokyo. The yen is currently trading at 80.86 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Japan, New Zealand and South Korea are trading notably higher, while Malaysia is up marginally. Markets across the region ended higher on Thursday.
On Wall Street, stocks moved higher on Thursday following the Greek parliament voting for rapid implementation of the austerity plan that includes billions of euros in spending cuts and tax increases. Data revealing an unexpected expansion in Chicago-area manufacturing activity in June also contributed to the surge.
The major averages rose to their best closing levels in a month. The Dow jumped 152.9 points or 1.3 percent to 12,414.3, the Nasdaq moved up 33 points or 1.2 percent to 2,773.5 and the S&P 500 ended up 13.2 points or 1 percent at 1,320.6.
Major European markets too ended notably higher on Thursday. The German DAX index advanced by 1.1 percent, while the U.K.'s FTSE 100 index and the French CAC 40 index both gained 1.5 percent.
Crude oil prices edged higher on Thursday on the back of an encouraging report on manufacturing activity in June. Light, sweet crude for August delivery ended up 65 cents at US$95.42 a barrel on the New York Mercantile Exchange.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.