Japanese Market Slightly Higher

The Japanese stock market is slightly higher in choppy trading on Thursday, recouping some of the losses in the previous session, with the Nikkei 225 staying above the 31,900 level, despite the mostly negative cues from global markets overnight, as traders reacted positively to upbeat GDP data released earlier in the day. Gains were seen across most sectors, led by commodity-linked stocks.

The benchmark Nikkei 225 Index is up 19.14 points or 0.06 percent to 31,932.88, after touching a high of 32,035.95 earlier. Japanese stocks closed sharply lower on Wednesday.

Market heavyweight SoftBank Group is edging up 0.5 percent and Uniqlo operator Fast Retailing is gaining more than 1 percent. Among automakers, Toyota is gaining more than 1 percent, while Honda is adding almost 1 percent.

In the tech space, Screen Holdings is gaining 1.5 percent, Tokyo Electron is edging up 0.5 percent and Advantest is adding almost 1 percent.

In the banking sector, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial are gaining almost 1 percent each.

Among the major exporters, Mitsubishi Electric is edging up 0.3 percent and Panasonic is advancing almost 2 percent, while Canon is edging down 0.4 percent and Sony is losing almost 1 percent.

Among the other major losers, Citizen Watch is losing almost 5 percent and NEXON is declining almost 4 percent.

Conversely, Eisai is soaring more than 9 percent, Tokyo Electric Power is gaining almost 4 percent and Hitachi Construction Machinery is adding more than 3 percent, while Kobe Steel, Kansai Electric Power, NTN, Central Japan Railway, Hino Motors and Sojitz are all advancing almost 3 percent each.

In other news, shares in Eisai are soaring more than 9 after the US FDA revealed that data from a late-stage trial of Eisai and Biogen’s Alzheimer’s disease drug suggests it offered a meaningful benefit to patients and could win a traditional approval without safety concerns hampering it.

In economic news, Japan’s gross domestic product expanded a seasonally adjusted 0.7 percent on quarter in the first three months of 2023, the Cabinet Office said on Thursday. That beat forecasts for an increase of 0.4 percent following the flat reading in the three months prior. On an annualized basis, GDP climbed 2.7 percent on year – also topping expectations for a gain of 1.6 percent following the 0.1 percent rise in the previous three months.

Overall bank lending in Japan was up 3.4 percent on year in May, the Bank of Japan said on Thursday – coming in at 602.335 trillion yen. That exceeded expectations for an increase of 3.1 percent and was up from 3.2 percent in April. Excluding trusts, lending climbed an annual 3.8 percent to 525.376 trillion yen – accelerating from 3.5 percent in the previous month.

In the currency market, the U.S. dollar is trading in the higher 139 yen-range on Thursday.

On Wall Street, stock moved in opposite directions during trading on Wednesday following the lackluster performance to start the week. While the tech-heavy Nasdaq moved sharply lower, the Dow posted a modest gain.

The Nasdaq tumbled 171.52 points or 1.3 percent to 13,104.90 after ending Tuesday’s trading at its best closing level in well over a year. The S&P 500 also fell 16.33 points or 0.4 percent to 4,267.52, while the Dow rose 91.74 points or 0.3 percent to 33,665.02.

Meanwhile, the major European markets moved slightly lower on the day. While the German DAX Index dipped by 0.2 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both edged down by 0.1 percent.

Crude oil prices climbed higher on Wednesday as Saudi Arabia’s recent decision to cut crude output outweighed concerns about demand, while data showing a drop in U.S. crude inventories last week also supported prices. West Texas Intermediate Crude oil futures for July ended higher by $0.79 or 1.1 percent at $72.53 a barrel.

Market Analysis