Japanese Market Significantly Higher

The Japanese stock market is significantly higher on Tuesday, recouping some of the losses in the previous two sessions, with the benchmark Nikkei index above the 28,600 level, following the broadly positive cues from Wall Street overnight, as traders picked stocks at a bargain after the virus-induced sell-off. Traders also digested reports that the new coronavirus variant would be milder than initially dreaded.

The benchmark Nikkei 225 Index is gaining 316.81 points or 1.12 percent to 28,600.73, after touching a high of 28,718.70 earlier. Japanese shares closed sharply lower on Monday.

Market heavyweight SoftBank Group is edging up 0.4 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 2 percent.

In the tech space, Advantest is gaining almost 4 percent, Tokyo Electron is adding more than 3 percent and Screen Holdings is up almost 3 percent. In the banking sector, Mitsubishi UFJ Financial is gaining more than 1 percent, Sumitomo Mitsui Financial is edging up 0.5 percent and Mizuho Financial is adding almost 1 percent.

The major exporters are mostly higher. Mitsubishi Electric is edging up 0.3 percent and Panasonic is flat, while Canon is gaining more than 3 percent and Sony is adding almost 3 percent.

Among the other major gainers, Nikon is surging almost 6 percent and Japan Exchange Group is gaining almost 5 percent, while Olympus, Yaskawa Electric and Odakyu Electric Railway are adding more than 4 percent each. Hitachi Zosen, kelo, Minebea Mitsumi, Keisei Electric Railway and Sumco are up almost 4 percent each, while East Japan Railway Ricoh and Yokogawa Electric are rising more than 3 percent each.

Conversely, Nissan Motor is losing almost 3 percent.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.7 percent in October, the Ministry of Internal Affairs and Communications said on Tuesday. That was below expectations for 2.8 percent, which would have been unchanged from the September reading. The participation rate was 62.0 percent, down from 62.3 percent a month earlier.

Meanwhile, the Ministry of Economy, Trade and Industry said on Tuesday that industrial production in Japan was up a seasonally adjusted 1.1 percent on month in October. That was shy of expectations for an increase of 1.8 percent following the 5.4 percent decline in September. On a yearly basis, industrial production retreated 4.7 percent after sinking 2.3 percent in the previous month. Upon the release of the data, the METI adjusted its monthly assessment of industrial production to that it is pausing.

In the currency market, the U.S. dollar is trading in the higher 113 yen-range on Tuesday.

On Wall Street, stocks showed a strong move back to the upside during trading on Monday following the sell-off seen last Friday. The major averages all regained ground, with the tech-heavy Nasdaq leading the way higher.

The major averages gave back some ground going into the close but remained firmly positive. The Dow climbed 236.60 points or 0.7 percent to 35,135.94, the Nasdaq spiked 291.18 points or 1.9 percent to 15,782.83 and the S&P 500 jumped 60.65 points or 1.3 percent to 4,655.27.

The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index rose by 0.5 percent and the German DAX Index edged up by 0.2 percent.

Crude oil futures settled sharply higher Monday, bouncing back and regaining some ground after Friday’s setback as traders looked ahead to OPEC meetings. West Texas Intermediate Crude oil futures for January ended higher by $1.80 or 2.6 percent at $69.95 a barrel.

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