Japanese market up sharply | Nasdaq

(RTTNews) – The Japanese stock market is up sharply on Wednesday, ending a three-session losing streak as the Nikkei benchmark remains above the 28,700 level, following broadly positive signals from Wall Street overnight, with gains in most sectors as traders digested comments from Fed Chairman Powell, although lingering concerns about the impact of the rapid spread of the Omicron coronavirus variant remain. The benchmark Nikkei 225 is up 495.31 points or 1.76% to 28,717.79, after peaking at 28,722.33 earlier. Japanese stocks closed significantly lower on Tuesday.

Market heavyweight SoftBank Group gained more than 4% and operator Uniqlo Fast Retailing added more than 1%. Among car manufacturers, Honda is up 0.4% and Toyota is stagnant.

In the tech space, Screen Holdings is gaining more than 3 percent, while Advantest adds nearly 3 percent and Tokyo Electron is up 3.5 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial lose almost 1% each, while Mitsubishi UFJ Financial is down 0.3%.

Among the main exporters, Panasonic gained 1.5%, Sony gained almost 2% and Mitsubishi Electric gained more than 2%, while Canon lost more than 1%.

Among the other big losers, Sumco is up more than 6% and Inpex is gaining more than 5%, while Kawasaki Kisen Kaisha and Keyence add almost 5% each. Toyota Tsusho and Denso gain nearly 5% each, while Yokogawa Electric, Suzuki Motor, Shin-Etsu Chemical, Fujikura and Showa Denko KK each gain 3.5%.

Conversely, Eisai lost nearly 3%.

On the economic news side, the value of all bank loans in Japan rose 0.6 percent year-on-year for the second consecutive month in December, the Bank of Japan said on Wednesday, reaching 580.869 billion yen. Excluding trusts, bank loans soared 0.5% per annum to 504.509 billion yen, while trust loans increased 0.8% year on year to 76.360 billion yen. Foreign bank loans fell 4.4 percent year-on-year to 3,107 trillion yen. In the fourth quarter of 2021, total bank lending increased 0.7% year on year, while non-trust lending increased 0.6% and trust lending improved 1.0%.

Japan posted a current account surplus of 897.3 billion yen in November, the finance ministry said on Wednesday, down 48.2% year on year. This still exceeds expectations of a surplus of 585 billion yen after the revised upward surplus of 1.1 trillion yen in October (initially 1.018 trillion yen). Exports grew 23.2 percent year on year to 7.445 trillion yen, while imports jumped 44.9 percent annually to 7.877 trillion yen for a trade deficit of 431.3 trillion yen . The capital account recorded a deficit of 20.7 billion yen in November, while the financial account showed a surplus of 218.5 billion yen.

In the currency market, the US dollar traded in the low range of 115 yen on Wednesday.

On Wall Street, stocks showed a significant turnaround during the trading day on Tuesday after falling lower early in the session. The main averages prolonged the recovery observed during the previous session, the highly technical Nasdaq recording a particularly strong gain.

The major averages moved roughly sideways towards the close, oscillating in positive territory. While the Nasdaq jumped 210.62 points or 1.4% to 15,153.45, the S&P 500 rose 42.78 points or 0.9% to 4,713.07 and the Dow rose 183, 15 points or 0.5% at 36,252.02.

Major European markets also posted a notable rebound from the recent weakness. While the UK FTSE 100 index rose 0.6%, the French CAC 40 index and the German DAX index jumped 1% and 1.1%, respectively.

Crude oil prices rose sharply on Tuesday, taking the most active crude futures contract to the highest level in about two months. Hopefully the spread of the Omicron variant won’t derail the global economy and negatively impact energy demand and sustained oil prices. West Texas Intermediate crude oil futures for February climbed $ 2.99 or 3.8% to $ 81.22 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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