Japanese Market Rises
(RTTNews) - The Japanese stock market is rising on Tuesday following the overnight rally on Wall Street amid optimism about U.S.-China trade talks and as fears of a global economic slowdown eased. In addition, exporters' shares were buoyed by a weaker yen.
The benchmark Nikkei 225 Index is advancing 111.41 points or 0.52 percent to 21,620.44, after touching a high of 21,744.64 in early trades. Japanese stocks closed higher on Monday, but off the day's highs.
The major exporters are higher on a weaker yen. Mitsubishi Electric is gaining more than 2 percent, Panasonic is rising more than 1 percent, Canon is higher by 0.4 percent and Sony is unchanged.
In the tech sector, Advantest is gaining more than 3 percent and Tokyo Electron is higher by more than 2 percent. Among the major automakers, Honda is advancing more than 1 percent and Toyota is adding almost 1 percent.
In the banking space, Mitsubishi UFJ Financial is rising more than 2 percent and Sumitomo Mitsui Financial is higher by almost 2 percent. In the oil sector, Inpex is adding almost 1 percent, while Japan Petroleum is declining more than 1 percent.
Among the other major gainers, Toho Zinc is rising more than 6 percent and Sumco Corp. is higher by almost 5 percent.
On the flip side, Rakuten is losing more than 5 percent, Cyberagent is lower by almost 4 percent and Tokyo Electric Power is declining more than 3 percent.
On the economic front, the Bank of Japan said that the monetary base in Japan was up 3.8 percent on year in March, coming in at 494.202 trillion yen. That follows the 4.6 percent gain in February.
In the currency market, the U.S. dollar is trading in the lower 111 yen-range on Tuesday.
On Wall Street, stocks rallied on Monday, reflecting continued optimism about U.S.-China trade talks as well as a positive reaction to upbeat U.S. and Chinese manufacturing data. Traders largely shrugged off a Commerce Department report showing an unexpected decrease in U.S. retail sales in February, as the report also showed a significant upward revision to the increase in sales in the previous month.
The Dow jumped 329.74 points or 1.3 percent to 26,258.42, the Nasdaq soared 99.59 points or 1.3 percent to 7,828.91 and the S&P 500 surged up 32.79 points or 1.2 percent to 2,867.19.
The major European markets also moved to the upside on Monday. While the German DAX Index surged up by 1.4 percent, the French CAC 40 Index jumped by 1 percent and the U.K.'s FTSE 100 Index rose by 0.5 percent.
Crude oil prices rose sharply on Monday, as worries about global energy demand eased after data showed a notable improvement in manufacturing activity in the world's second largest economy. WTI crude for May ended up $1.45 or 2.4 percent at $61.59 a barrel on the New York Mercantile Exchange, the highest level in nearly five months.
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