The Japanese stock market is modestly higher on Monday, extending the sharp gains in the previous session, with the Nikkei 225 staying above the 30,300 level, following the mixed cues from Wall Street on Friday, as traders are upbeat after news that Japan is looking to completely lift COVID-19 state of emergencies on Thursday as the fifth wave of coronavirus infections wanes.
Meanwhile, traders are concerned about the uncertainty on the situation with China Evergrande, as the indebted property company has not provided clarification about a key interest payment.
The benchmark Nikkei 225 Index is up 112.45 points or 0.37 percent at 30,361.26, after touching a high of 30,414.61 earlier. Japanese shares ended sharply higher on Friday.
Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding almost 2 percent. Among automakers, Honda is gaining almost 2 percent and Toyota is adding more than 2 percent.
In the tech space, Advantest is gaining more than 1 percent, while Tokyo Electron and Screen Holdings are losing almost 1 percent each. In the banking sector, Sumitomo Mitsui Financial is gaining more than 2 percent, Mitsubishi UFJ Financial is adding more than 1 percent and Mizuho Financial is up almost 2 percent.
The major exporters are higher, with Panasonic and Canon gaining almost 1 percent each, while Sony and Mitsubishi Electric are flat.
Among the other major gainers, Hitachi is gaining more than 5 percent, while Tokyo Electric Power, Inpex, Credit Saison and Takashimaya are adding almost 5 percent each. Isetan Mitsukoshi Holdings, East Japan Railway, Marui Group, Central Japan Railway, Resona Holdings and ANA Holdings are higher by more than 4 percent each, while West Japan Railway, J. Front Retailing and Mitsui E&S Holdings are up more than 3 percent each.
Conversely, Tosoh and Daikin Industries are losing more than 3 percent each. Chugai Pharmaceutical and M3 are down almost 2 percent each.
In the currency market, the U.S. dollar is trading in the higher 110 yen-range on Monday.
On Wall Street, stocks showed a lack of direction over the course of the trading session on Friday, after moving sharply higher for two straight days. The major averages spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the session narrowly mixed. While the Nasdaq edged down 4.55 points or less than a tenth of a percent to 15,047.70, the Dow crept up 33.18 points or 0.1 percent to 34,798.00 and the S&P 500 ticked up 6.50 points or 0.2 percent to 4,455.48.
Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index slumped by 1 percent, the German DAX Index fell by 0.7 percent and the U.K.’s FTSE 100 Index dipped by 0.4 percent.
Crude oil prices climbed Friday and front-month WTI oil futures contracts saw gains for a fifth straight week amid tighter supplies. West Texas Intermediate Crude oil futures for November rose $0.68 or 0.9 percent at 73.98 a barrel. WTI Crude futures gained 2.8 percent for the week.
Market Analysis
Japanese Market Modestly Higher
2021-09-27 02:36:56
