By RTT News, October 10, 2013, 10:20:00 PM EDT
(RTTNews.com) - The Japanese stock market is trading notably higher on Friday, tracking cues from Wall Street where stocks rallied sharply overnight amid signs of progress in the U.S. budget stalemate.
Automobile, banking, steel, non-ferrous metals, chemicals, pharmaceuticals and construction stocks are trading sharply higher. The benchmark Nikkei 225 index is currently up 185.3 points or 1.3 percent at 14,380.
Yokohama Rubber, Sumitomo Mitsui Trust Holdings, Dainippon Screen Manufacturing, Hokuetsu Kishu Paper, Matsui Securities and Nikon Corp. are up 4 to 5 percent.
Fujitsu, Hitachi Construction Machinery, Nissan Chemical Industries, Pacific Metals, Trend Micro, Fujifilm Holdings, J Front Retailing and Credit Saison, Casio Computer and Toyo Seikan Group are all trading higher by over 3 percent.
Among bank stocks, Shizuoka Bank, Chiba Bank, Bank of Yokohama, Mitsubishi UFJ Financial ( MTU ), Mizuho Financial (MFJ) and SMFG are trading higher by 2 to 4 percent. Aozora Bank and Shinsei Bank are also trading sharply higher.
In the automobile space, Isuzu Motors, Hino Motors, Mazda Motor, Suzuki Motor and Mitsubishi Motors are up 2 to 4 percent, while Honda Motor, Nissan Motor and Toyota Motor ( TM ) are trading modestly higher.
Canon Inc. ( CAJ ) opened lower on likely fall in operating profit in January-September 2013 period, but recovered subsequently, and is currently trading marginally higher.
Among the losers, Fast Retailing is trading lower by 4.6 percent following the company forecasting lower earnings for financial year 2013.
Sony Financial Holdings Inc. is down 2.5 percent. Sharp Corp., Kao Corp., Minebea and Show Denko KK are down 0.6 to 1 percent.
On the economic front, the index measuring corporate service prices in Japan was up 0.3 percent at 102.7 in September, compared to the previous month, the Bank of Japan said on Friday. That topped forecasts for an increase of 0.2 percent following the downwardly revised 0.2 percent gain in August (originally 0.3 percent).
On a yearly basis, prices were up 2.3 percent, matching expectations and unchanged from the previous month after a downward revision from 2.4 percent.
Export prices were flat on month and down 2.1 percent on year, the data showed, while import prices added 1.2 percent on month and dipped an annual 1.5 percent.
Meanwhile, the M2 money stock in Japan was up 3.8 percent on year in September, at 850.8 trillion yen. That matches forecasts and is unchanged from the August reading following an upward revision from 3.7 percent.
The M3 money stock was up 3.1 percent on year to 1,161.0 trillion yen - beating forecasts for 3.0 percent, which would have been unchanged from the previous month. The L money stock added an annual 3.7 percent to 1,512.4 trillion yen, acceleration from the 3.6 percent gain in August.
In the currency market, the U.S. dollar traded in the lower 98 yen-range in early deals in Tokyo. The yen is currently trading at 98.25 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Hong Kong, South Korea, Shanghai, Malaysia and New Zealand are all trading notably higher, while Singapore and Taiwan are up with modest gains.
On Wall Street, stocks moved higher on Thursday amid optimism about an end to the budget deadlock in Washington following the Republican leadership proposing a legislation to temporarily raise the nation's debt limit in order to avoid a default and allow time for negotiations.
The major averages closed at or near their highs for the session. The Dow jumped 323.1 points or 2.2 percent to 15,126.1, the Nasdaq soared 83 points or 2.3 percent to 3,760.8 and the S&P 500 surged up 36.2 points or 2.2 percent to 1,692.6.
Major European markets too ended notably higher. While the U.K.'s FTSE 100 index advanced by 1.5 percent, the German DAX index and the French CAC 40 index jumped by 2 percent and 2.2 percent, respectively.
U.S. crude oil jumped to end higher on Thursday, on supply concerns after developments in Libya and the Organization of the Petroleum Exporting Countries lifting its global oil demand forecast. Crude for November delivery ended up $1.40 or 1.4 percent to close at $103.01 a barrel on the New York Mercantile Exchange, after scaling a high of $103.57 a barrel intraday.
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