Japanese Market Sharply Higher

(RTTNews) - The Japanese stock market is sharply higher on Friday, recouping the losses in the previous two sessions, with the benchmark Nikkei 225 surging more than 700 points to nearly the 28,200 level, following the broadly positive cues from global markets overnight, with gains across most sectors, led by technology stocks, as softer-than-expected US inflation data raised hopes for a slower pace of interest rate hikes in the coming months.

The benchmark Nikkei 225 Index is gaining 730.13 points or 2.66 percent to 28,176.23, after touching a high of 28,329.54. Japanese stocks closed significantly lower on Thursday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is advancing almost 3 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 2 percent.

In the tech space, Advantest is soaring almost 9 percent, Screen Holdings is surging more than 7 percent and Tokyo Electron is advancing more than 9 percent.

In the banking sector, Mizuho Financial is losing more than 1 percent, while Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are edging down 0.2 percent each.

Among major exporters, Canon is losing almost 1 percent, while Panasonic is gaining almost 1 percent, Sony is surging almost 5 percent and Mitsubishi Electric is advancing more than 1 percent.

Among the other major gainier, Shiseido and FUJIFILM are skyrocketing more than 10 percent each, while Mazda Motor and M3 are soaring almost 10 percent each. Recruit Holdings is surging almost 9 percent and Omron is advancing more than 8 percent, Taiyo Yuden is gaining almost 8 percent and Hoya is adding more than 7 percent, while Keyence, SMC, Nidec and Murata Manufacturing are all up more than 6 percent each.

Conversely, Nikon and Mitsui E&S Holdings are plummeting more than 10 percent each, while Terumo is plunging almost 6 percent. Nippon Sheet Glass and Haseko are sliding almost 4 percent each, while JGC Holdings, Takashimaya and Mitsubishi Motors are slipping more than 3 percent each. Tokyo Tatemono is losing almost 3 percent.

In economic news, producer prices in Japan were up 0.6 percent on month in October, the Bank of Japan said on Friday. That matched expectations and was down from the upwardly revised 1.0 percent increase in September (originally 0.7 percent). On a yearly basis, producer prices spiked 9.1 percent - exceeding expectations and slowing from the upwardly revised 10.2 percent jump in the previous month (originally 9.7 percent).

In the currency market, the U.S. dollar is trading in the lower 142 yen-range on Friday.

On Wall Street, stocks turned in their best performance in two years during trading on Thursday, reflecting a positive reaction to a highly anticipated report on consumer price inflation. With the strong upward move, the Dow reached its best closing level in almost three months, while the S&P 500 hit a two-month closing high.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow spiked 1,201.43 points or 3.7 percent to 33,715.37, the Nasdaq skyrocketed 760.97 points or 7.4 percent to 11,114.15 and the S&P 500 soared 207.80 points or 5.5 percent to 3,956.37.

The major European markets too showed strong moves to the upside on the day. While the German DAX Index spiked by 3.5 percent, the French CAC 40 Index surged by 2.0 percent and the U.K.'s FTSE Index jumped by 1.1 percent.

Crude oil prices climbed higher on Thursday, rebounding after three straight days of losses as the dollar fell on the better than expected U.S. inflation data. West Texas Intermediate Crude oil futures for December ended higher by $0.64 or 0.8 percent at $86.47 a barrel.