Additional Support Predicted For Japan Stock Market

(RTTNews) - The Japan stock market has moved higher in three four sessions, collecting more than 1,800 points or 4.7 percent along the way. The Nikkei 225 now sits just above the 40,150-point plateau and it may extend its gains again on Monday.

The global forecast for the Asian markets is positive on optimism over a possible resolution to tariff talks. The European and U.S. markets finished higher and the Asian bourses are expected to follow that lead.

The Nikkei finished sharply higher on Friday following gains from the technology stocks and the automobile producers, while the financials came in mixed.

For the day, the index soared 566.19 points or 1.43 percent to finish at 40,150.79 after trading between 39,847.31 and 40,267.84.

Among the actives, Nissan Motor accelerated 3.11 percent, while Mazda Motor soared 4.82 percent, Toyota Motor rallied 2.87 percent, Honda Motor and Mitsubishi Electric both spiked 2.97 percent, Softbank Group collected 2.54 percent, Mitsubishi UFJ Financial rose 0.38 percent, Mizuho Financial shed 0.55 percent, Sumitomo Mitsui Financial perked 0.28 percent, Sony Group jumped 3.19 percent, Panasonic Holdings strengthened 1.83 percent and Hitachi surged 4.52 percent.

The lead from Wall Street is upbeat as the major averages spent most of Friday in the green, shaking off a late slump to finish solidly in positive territory.

The Dow jumped 432.47 points or 1.00 percent to finish at 43,819.27, while the NASDAQ gained 105.56 points or 0.52 percent to end at 20,273.46 and the S&P 500 added 32.05 points or 0.52 percent to end at 6,173.07. For the week, the NASDAQ surged 4.3 percent, the Dow jumped 3.8 percent and the S&P 500 shot up 3.4 percent.

Optimism about new trade deals contributed to the early rally on Wall Street after President Donald Trump indicated the U.S. had signed an agreement with China.

However, stocks pulled back sharply in afternoon trading after Trump said he is ending trade talks with Canada due to the country imposing a digital services tax on U.S. technology companies.

In economic news, the Commerce Department released a closely watched report that included the Federal Reserve's preferred readings on consumer price inflation - which said overall inflation rose in line with expectations.

Crude oil posted gains on Friday in the wake of the U.S. confirming readiness to sign trade deals with China and multiple other trading partners, plus indications of strong summer demand. West Texas Intermediate crude for August delivery rose $0.28 to settle at $65.52 per barrel.

Closer to home, Japan will release preliminary May numbers for industrial production later this morning. Production is expected to add 2.6 percent on month, easing from 4.9 percent in April. Japan also will see May figures for construction orders and housing starts; in April, construction orders surged 52.7 percent on year, while housing starts tumbled an annual 26.6 percent.