Japanese Market Modestly Higher

(RTTNews) - The Japanese market is modestly higher on Thursday, extending the gains in the previous three sessions, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving well above the 39,700 level, with gains in some index heavyweights and exporters. Traders also remain cautious ahead of the interest rate decision on Friday.

The benchmark Nikkei 225 Index is up 109.21 points or 0.28 percent to 39,755.46, after touching a high of 39,897.49 earlier. Japanese shares ended sharply higher on Wednesday.

Market heavyweight SoftBank Group is gaining more than 3 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Toyota is declining more than 1 percent and Honda is edging down 0.5 percent.

In the tech space, Advantest is gaining almost 1 percent, while Screen Holdings is down more than 1 percent and Tokyo Electron is losing almost 1 percent.

In the banking sector, Mizuho Financial, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are all losing almost 1 percent each.

Among the major exporters, Panasonic and Canon are gaining almost 1 percent each, while Sony is adding almost 2 percent and Mitsubishi Electric is edging up 0.4 percent.

Among other major gainers, Mitsubishi Heavy Industries is surging more than 5 percent, while Fujikura, Nidec and Nintendo are gaining more than 3 percent each. NTT Data, Oji Holdings and IHI are adding almost 3 percent each.

Conversely, Fuji Electric is losing more than 3 percent, while Tokyo Electric Power and Hino Motors are declining almost 3 percent each.

In economic news, Japan posted a seasonally adjusted merchandise trade surplus of 130.936 billion yen in December, the Ministry of Finance said on Thursday. That beat expectations for a deficit of 55.0 billion yen following the 110.3 billion yen shortfall in November.

Exports climbed 2.8 percent on year to 9.910 trillion yen - exceeding expectations for an increase of 2.3 percent after rising 3.8 percent in the previous month. Imports gained an annual 1.8 percent to 9.779 trillion yen versus forecasts for an increase of 2.6 percent following the 3.8 percent decline a month earlier.

In the currency market, the U.S. dollar is trading in the lower 156 yen-range on Thursday.

On Wall Street, stocks closed on a firm note on Wednesday as investors reacted positively to some upbeat earnings updates and corporate news, and on continued optimism about a few interest rate cuts by the Federal Reserve this year. Worries about tariff threats lingered but investors largely shrugged off concerns and kept picking up stocks.

The major averages all closed on a strong note. The Dow closed up 130.92 points or 0.3 percent, at 44,156.73. The S&P 500 gained 37.13 points or 0.61 percent, settling at 6,086.37, while the Nasdaq climbed 252.56 points or 1.28 percent, to 20,009.34.

The major European markets also moved to the upside on the day. While the German DAX Index surged by 1.01 percent, the U.K.'s FTSE 100 Index edged down 0.04 percent and the French CAC 40 Index gained 0.86 percent.

Crude oil prices drifted lower on Wednesday, extending recent weakness on concerns about excess supply in the market due to the Trump administration's plan to maximize oil and gas production. West Texas Intermediate Crude oil futures for March fell $0.39 or 0.5 percent at $75.44 a barrel, extending losses to a fifth straight session.