Markets

Japanese Market Notably Higher

(RTTNews) - The Japanese stock market is notably higher on Tuesday following the record closing highs overnight on Wall Street amid upbeat news on the coronavirus front. A sharp fall in the number of daily coronavirus cases in Tokyo to below 100 also boosted sentiment.

The benchmark Nikkei 225 Index is advancing 326.41 points or 1.42 percent to 23,311.92, off a high of 23,314.45 earlier. Japanese shares closed modestly higher on Monday.

Market heavyweight SoftBank Group is rising more than 1 percent and Fast Retailing is higher by more than 2 percent.

The major exporters are higher on a weaker safe-haven yen. Canon and Panasonic are gaining more than 2 percent each, Mitsubishi Electric is advancing more than 1 percent and Sony is higher by 0.3 percent.

In the tech space, Advantest is adding 0.6 percent and Tokyo Electron is up 0.3 percent. In the financial sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are rising almost 3 percent each.

Takeda Pharmaceuticals said it has agreed to divest its unit Takeda Consumer Healthcare Co. Ltd. or TCHC to Blackstone Group Inc. for 242 billion yen. Shares of Takeda Pharma are advancing almost 1 percent.

Among automakers, Honda Motor is advancing more than 2 percent and Toyota is adding more than 1 percent.

In the oil sector, Japan Petroleum is rising more than 2 percent and Inpex is higher by almost 2 percent after crude oil prices rose overnight.

Among the other major gainers, IHI Corp. is gaining almost 6 percent, while Toray Industries and Konica Minolta are rising more than 5 percent each. ANA Holdings, Credit Saison and Alps Alpine are higher by almost 5 percent each.

Conversely, Cyberagent is losing more than 2 percent and Chughai Pharmaceutical is lower by almost 2 percent.

In the currency market, the U.S. dollar is trading in the upper 105 yen-range on Tuesday.

On Wall Street, stocks closed higher on Monday following upbeat news on the coronavirus front. The U.S. Food and Drug Administration announced Sunday that it has issued an emergency use authorization for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients. Adding to the positive sentiment, a report from the Financial Times said the Trump administration is considering fast-tracking an experimental coronavirus vaccine from the U.K. for use in America ahead of the presidential election.

The Dow surged up 378.13 points or 1.4 percent to 28,308.46, the Nasdaq advanced 67.92 points or 0.6 percent to 11,379.72 and the S&P 500 jumped 34.12 points or 1 percent to 3,431.28.

The major European markets also showed strong moves to the upside on Monday. While the U.K.'s FTSE 100 Index jumped by 1.7 percent, the French CAC 40 Index and the German DAX Index spiked by 2.3 percent and 2.4 percent, respectively.

Crude oil prices jumped on Monday as the threat of hurricanes in the Caribbean and the Gulf of Mexico brought oil production to a halt. WTI crude futures added $0.28 or 0.66 percent to settle at $42.62 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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