The Japanese stock market is significantly higher on Thursday, rebounding after closing the previous session lower, with the Nikkei 225 above the 29,500 level, buoyed by technology stocks which mirrored the surge by the tech-heavy Nasdaq. Traders are also optimistic on a stimulus-driven global economic recovery from the Covid-19 pandemic after US President Joe Biden announced a US$2.25 trillion infrastructure investment plan.
The benchmark Nikkei 225 Index is adding 353.84 points or 1.21 percent to 29,532.64, after hitting a low of 29,418.70 in early trades. Japanese shares ended lower on Wednesday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is up almost 1 percent. Among automakers, Honda is edging down 0.5 percent and Toyota is losing almost 2 percent.
In the tech space, Advantest and Tokyo Electron are gaining almost 3 percent each, Screen Holdings is up more than 4 percent. In the banking sector, Mitsubishi UFJ Financial is adding more than 1 percent, while Sumitomo Mitsui Financial is edging down 0.4 percent.
The major exporters are mostly higher. Mitsubishi Electric is edging up 0.1 percent and Canon is adding 0.4 percent, while Panasonic edging down 0.4 percent. Sony is gaining almost 2 percent.
Among the other major gainers, Dai-ichi Life Holdings is soaring more than 10 percent, Fanuc Corp. is adding more than 5 percent and M3 is up more than 4 percent. Sumco and DeNA are also up more than 3 percent. Nissan Chemical, Yamaha, Chiba Bank, Nexon and Yokogawa Electric are all up almost 3 percent each.
Conversely, Seiko Epson is losing almost 4 percent, while Kawasaki Heavy Industries and Isetan Mitsukoshi Holdings are down almost 3 percent each. Hitachi Zosen, Mitsui E&S Holdings, Aozora Bank, Yokohama Rubber, Nippon Steel, Mitsui & Co., ANA Holdings, Kansai Electric and JFT Holdings are all declining more than 2 percent each.
In economic news, large manufacturing in Japan saw some improvement in the first quarter of 2021, the Bank of Japan’s quarterly Tankan Survey of business sentiment showed on Thursday with a diffusion index score of +5. That beat forecasts for a reading of 0 as expectations were very soft because of the global Covid-19 pandemic. The Q1 reading was up from a score of -10 three months ago. The outlook came in at +4, matching expectations and up from -8 in the previous quarter.
Separately, the latest survey from Jibun Bank showed on Thursday that the manufacturing sector in Japan continued to expand in March, and at a faster pace, with a seasonally adjusted manufacturing PMI score of 52.7. That’s up from 51.4 in February, 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 higher 110 yen-range on Thursday.
On Wall Street, stocks came under pressure going into the close of trading on Wednesday but managed to end the day mostly higher. The tech-heavy Nasdaq posted a particularly strong gain amid a rally by technology stocks.
The Nasdaq jumped 201.48 points or 1.5 percent to 13,246.87 and the S&P 500 rose 14.34 points or 0.4 percent to 3,972.89 after reaching a record intraday high. Meanwhile, the narrower Dow fell 85.41 points or 0.3 percent to 32,981.55.
Meanwhile, the major European markets moved to the downside on the day. While the U.K.’s FTSE 100 Index tumbled by 0.9 percent, the French CAC 40 Index fell by 0.3 percent and the German DAX Index closed just below the unchanged line.
Crude oil prices moved sharply lower Wednesday amid concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for May ended down $1.39 or 2.3 percent at $59.16 a barrel.
Market Analysis
Japanese Market Significantly Higher
2021-04-01 02:26:31
