Japanese Market Modestly Higher

(RTTNews) - The Japanese stock market is trading modestly higher on Monday, extending the gains in the previous session. The benchmark S&P/ASX 200 is moving a tad above the 36,300 level, following the broadly positive cues from Wall Street cues on Friday, with gains in index heavyweights and financial stocks partially offset by weakness in technology stocks.

The benchmark Nikkei 225 Index is up 150.66 or 0.42 percent at 36,308.68, after touching a high of 36,452.62 earlier. Japanese shares ended modestly higher on Friday.

Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is edging up 0.1 percent. Among automakers, Honda is gaining almost 2 percent and Toyota is adding almost 1 percent.

In the tech space, Screen Holdings is losing more than 4 percent, Advantest is declining almost 3 percent and Tokyo Electron is down almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining more than 1 percent, Mitsubishi UFJ Financial is advancing more than 2 percent and Mizuho Financial is adding almost 3 percent.

The major exporters are higher. Canon is gaining more than 1 percent, Mitsubishi Electric is adding almost 1 percent, Panasonic is surging 6.5 percent and Sony is edging up 0.1 percent.

Among other major gainers, Isetan Mitsukoshi Holdings is skyrocketing almost 10 percent, Seiko Epson is soaring more than 7 percent, while JTEKT, Pacific Metals and NEXON are surging almost 7 percent each. Fujitsu is gaining more than 6 percent and J. Front Retailing is adding almost 5 percent, while M3, CyberAgent and Denso are advancing more than 4 percent each. Mazda Motor, Chiba Bank, NTN and Kyocera are up almost 4 percent each.

Conversely, Sumitomo Chemical is plummeting more than 10 percent, Minebea Mitsumi is losing almost 6 percent, Toyota Tsusho is declining almost 4 percent and KDDI is down almost 3 percent.

In economic news, the service sector in Japan continued to expand in January, and at a faster pace, the latest survey from Jibun Bank showed on Monday with a services PMI score of 53.1. That's up from 51.5 in December, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the U.S. dollar is trading in the lower 148 yen-range on Monday.

On Wall Street, stocks moved sharply higher over the course of the trading day on Friday, extending the recovery rally seen during trading Thursday's session. The major averages more than offset the steep drop seen on Wednesday, with the Dow and the S&P 500 reaching new record closing highs.

The major averages pulled back off their best levels going into the close but remained in positive territory. The Nasdaq surged 267.31 points or 1.7 percent to 15,628.95, the S&P 500 jumped 52.42 points or 1.1 percent to 4,958.61 and the S&P 500 climbed 134.58 points or 0.4 percent to 38,654.42.

Meanwhile, the major European markets finished the day mixed. While the U.K.'s FTSE 100 Index edged down 0.1 percent, the French CAC 40 Index inched up 0.1 percent and the German DAX Index climbed 0.4 percent.

Crude oil prices fell sharply on Friday as hopes of an early rate cut by the Federal Reserve faded after data showed a bigger than expected increase in U.S. non-farm payroll employment in January. The dollar's sharp uptick after the jobs data also weighed on oil prices. West Texas Intermediate Crude oil futures for March ended down $1.54 or about 2.1 percent at $72.28 a barrel. The contract shed more than 7 percent in the week.