Japanese Market Modestly Higher

(RTTNews) - The Japanese stock market is trading modestly higher on Wednesday after opening in the red, extending the gains in the previous two sessions, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving a tad above the 38,600 level, with gains in some index heavyweights and exporters partially offset by weakness in financial and technology stocks.

The benchmark Nikkei 225 Index is up 67.34 or 0.17 percent at 38,604.08, after hitting a low of 38,364.16 and a high of 38,626.09 earlier. Japanese stocks ended notably higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.5 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is flat and Toyota is edging up 0.2 percent.

In the tech space, Advantest is edging down 0.2 percent, while Tokyo Electron and Screen Holdings are losing almost 1 percent each.

In the banking sector, Sumitomo Mitsui Financial is losing more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are down almost 1 percent each.

Among the major exporters, Canon, Panasonic and Mitsubishi Electric are edging up 0.1 to 0.4 percent each, while Sony is edging down 0.1 percent.

Among other major gainers, Lasertec is surging almost 5 percent, while Oji Holdings and Nintendo are gaining more than 4 percent each. LY is advancing almost 4 percent, CyberAgent is adding more than 3 percent and Taisei is up almost 3 percent each.

Conversely, Taiyo Yuden and Renesas Electronics are losing more than 3 percent each, while Nippon Steel and Nidec are down almost 3 percent each.

In economic news, Japan posted a merchandise trade deficit of 637.6 billion yen in May, the Ministry of Economy, Trade and Industry said on Wednesday. That exceeded expectations for a shortfall of 893.0 billion yen following the upwardly revised 115.6 billion yen deficit in April (originally 115.8 billion yen).

Exports were down 1.7 percent on year, topping forecasts for a decline of 3.8 percent following the 2.0 percent increase in the previous month. Imports were down an annual 7.7 percent versus expectations for a decline of 6.7 percent after shrinking 2.2 percent a month earlier.

Meanwhile, the value of core machinery orders in Japan was down a seasonally adjusted 9.1 percent on month in April, the Cabinet Office said on Wednesday - coming in at 919-0 billion yen. That beat forecasts for a decline of 9.3 percent following the 13.0 percent jump in March. On a yearly basis, core machinery orders rallied 6.6 percent - again topping forecasts for a gain of 4.0 percent after gaining 8.4 percent in the previous month. The total value of machinery orders received by 280 manufacturers operating in Japan fell 2.3 percent on month and added 0.6 percent on year in April.

In the currency market, the U.S. dollar is trading in the lower 145 yen-range on Wednesday.

On the Wall Street, stocks moved notably lower during trading on Tuesday, giving back ground following the rebound seen in the previous session.

The Nasdaq slid 180.12 points or 0.9 percent to 19,521.09, the S&P 500 decreased 50.39 points or 0.8 percent to 5,982.72 and the Dow fell 299.29 points or 0.7 percent to 42,215.80.

The major European markets all also moved to the downside on the day. While the German DAX Index slumped 1.1 percent, the French CAC 40 Index slid by 0.8 percent and the U.K.'s FTSE 100 Index decreased by 0.5 percent.

Crude oil prices soared on Tuesday, with the conflict between Israel and Iran showing no sign of retreat. West Texas Intermediate crude for July delivery shot up by $3.07 to settle at $74.84 per barrel.