Japanese Market Notably Higher

(RTTNews) - The Japanese stock market is notably higher on Wednesday, extending the gains in the previous two sessions, following the broadly positive cues from Wall Street overnight. The Nikkei 225 moved above the 33,000 mark, with gains across most sectors, led by exporters, financial and technology stocks.

The benchmark Nikkei 225 Index is up 170.50 or 0.52 percent at 33,014.20, after touching a high of 33,104.47 earlier. Japanese stocks ended modestly higher on Tuesday.

Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda and Toyota are losing almost 1 percent each.

In the tech space, Advantest is surging more than 6 percent, Tokyo Electron is adding almost 5 percent and Screen Holdings is advancing more than 3 percent.

In the banking sector, Mizuho Financial and Sumitomo Mitsui Financial are gaining almost 1 percent each, while Mitsubishi UFJ Financial is edging up 0.4 percent.

Among the major exporters, Sony and Mitsubishi Electric are advancing almost 1 percent each, while Canon and Panasonic are edging down 0.1 to 0.4 percent each.

Among other major gainers, Renesas Electronics is surging more than 5 percent, while Sharp and Recruit Holdings are advancing more than 3 percent each. Sumco and Daikin Industries are gaining almost 3 percent each.

Conversely, Tokyo Electric Power is losing more than 5 percent, Kawasaki Heavy Industries is declining almost 4 percent and DeNA is down almost 3 percent.

In economic news, large manufacturing in Japan strengthened in the fourth quarter of 2023, the Bank of Japan's quarterly Tankan Survey of business sentiment showed on Wednesday, with a diffusion index score of +12. That beat forecasts for a reading of +10 and was up from +9 three months ago. The outlook came in at +8, missing expectations for +9 and down from +10 in the previous quarter.

Large all industry capex is now seen higher by 13.5 percent, beating expectations for 12.4 percent and easing from 13.6 percent in the previous three months. The large non-manufacturers index came in at +30, beating forecasts for +27, which would have been unchanged. The outlook was +24, missing forecasts for +25 but up from +21 three months earlier. The small manufacturing index was at +1, while the small non-manufacturing index was at +14.

In the currency market, the U.S. dollar is trading in the lower 145 yen-range on Wednesday.

On the Wall Street, stocks saw some further upside during trading on Tuesday after moving mostly higher over the past few sessions. The major averages recovered from an early pullback and climbed firmly into positive territory as the day progressed.

The major averages once again finished the session at their best closing levels in well over a year. The Dow climbed 173.01 points or 0.5 percent to 36,577.94, the Nasdaq advanced 100.91 points or 0.7 percent to 14,533.40 and the S&P 500 rose 21.26 points or 0.5 percent to 4,643.70.

Meanwhile, the major European markets moved slightly lower over the course of the session. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both closed just below the unchanged line.

Crude oil prices fell to a six-month low Tuesday amid lingering concerns about the outlook for fuel demand and worries about possible oversupply in the market. West Texas Intermediate Crude oil futures for January ended down $2.71 or 3.8 percent at $68.61 a barrel.