Japanese Market Sharply Higher

The Japanese stock market is sharply higher on Friday, staging a strong comeback after suffering losses in the previous three sessions, with the benchmark Nikkei 225 just below the 29,000 mark, following broadly positive cues overnight from Wall Street on better-than-expected weekly labor market data. Bargain hunting also contributed to market’s rebound following heavy losses in recent sessions.

Meanwhile, continuing concerns about the spike in daily domestic coronavirus infections and possible more restrictions and lockdowns are limiting the market’s upside. The Japanese government plans to declare a COVID-19 state of emergency in three more prefectures.

The benchmark Nikkei 225 Index closed the morning session at 27,940.90, up 492.89 points or 1.80 percent,, after touching a high of 27,946.56 earlier. Japanese shares closed sharply lower on Thursday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is edging up 0.3 percent.

In the tech space, Advantest is gaining more than 2 percent, Tokyo Electron and Screen Holdings are adding more than 3 percent each. In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are adding more than 1 percent each.

The major exporters are mixed. Canon and Sony are gaining almost 3 percent each, while Panasonic is adding almost 1 percent. Mitsubishi Electric is edging up 0.2 percent.

Among the other major gainers, Isuzu Motors is skyrocketing 23 percent, IHI Corp. is surging more than 13 percent, Citizen Watch is gaining almost 13 percent and Dai Nippon is adding more than 8 percent, while Taiyo Yuden, Nikon, Konami Holdings and Trend Micro are all up more than 6 percent each. Aozora Bank, Rakuten, Nisshinbo Holdings and Chugai Pharma are rising almost 5 percent each. Haseko, Showa Denko and Isetan Mitsukoshi are adding more than 4 percent each.

Conversely, Nippon Sheet Glass in plunging more than 15 percent, Toho Zinc is losing more than 8 percent, Casio Computer is down more than 6 percent and Oji Holdings in declining more than 5 percent. Taiheiyo Cement, Sumitomo realty and Sumitomo Metal are losing more than 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 109 yen-range on Friday.

On Wall Street, stocks closed higher on Thursday, staging a strong comeback after suffering losses in the previous three sessions. Investors largely shrugged off concerns about inflation and possible monetary tightening by the Federal Reserve. Data showing a bigger than expected drop in initial jobless claims in the U.S. and bargain hunting contributed to market’s rebound.

The major averages all ended with strong gains. The Dow advanced 433.79 points or 1.29 percent to settle at 34,021.45, after hitting a high of 34,181.77. The S&P 500 ended up by 49.46 points or 1.22 percent at 4,112.50, while the tech laden Nasdaq closed higher by 93.31 points or 0.72 percent at 13,124.99, well off the day’s high of 13,247.87.

The major European markets ended mixed on Thursday as investors stayed cautious and refrained from making significant moves amid continued concerns about inflation. While the U.K.’s FTSE 100 declined 0.59%, Germany’s DAX moved up 0.33% and France’s CAC 40 advanced 0.14%.

Crude oil prices declined sharply on Thursday, weighed down by rising worries about outlook for energy demand and on news that Colonial Pipeline has resumed operations at its facilities. West Texas Intermediate Crude oil futures for June ended down by $2.26 or 3.4 percent at $63.82 a barrel, a two-week low.

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