Japanese Market Significantly Higher

(RTTNews) - Extending the gains in the previous six sessions, the Japanese market is significantly higher on Friday, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving up to near the 36,900 level, with gains in index heavyweights, automakers and exporters partially offset by weakness in financial stocks.

The benchmark Nikkei 225 Index is up 434.35 points or 1.19 percent to 36,886.65, after hitting a high of 36,976.51 earlier. Japanese shares ended notably higher on Thursday.

Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding more than 2 percent. Among automakers, Toyota is gaining more than 2 percent and Honda is advancing more than 3 percent.

In the tech space, Advantest is losing almost 1 percent and Screen Holdings is edging down 0.2 percent, while Tokyo Electron is gaining more than 2 percent.

In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial are all declining more than 1 percent.

Among the major exporters, Sony is gaining more than 1 percent, while Panasonic and Canon are adding more than 2 percent each. Mitsubishi Electric is losing almost 1 percent.

Among other major gainers, Yamato Holdings is surging more than 5 percent and Daikin Industries is gaining more than 4 percent, while Otsuka Holdings, Socionext and Shin-Etsu Chemical are adding almost 4 percent each. Subaru, OKUMA, Sumitomo Pharma, ZOZO, Hino Motors, Oriental Land, Olympus and Daiichi Sankyo are all advancing almost 3 percent each.

Conversely, Seiko Epson is losing more than 5 percent and Resona Holdings is declining almost 3 percent.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.5 percent in March, the Ministry of Internal Affairs and Communications said on Friday. That was higher than forecasts for 2.4 percent, which would have been unchanged from the February reading. The jobs-to-applicant ratio was 1.26, surpassing expectations for 1.25 and up from 1.24 in the previous month. The participation rate was 63.3 percent, in line with expectations and up from 63.2 percent.

Additionally, the Bank of Japan said the monetary base in Japan was down 4.8 percent on year in April, coming in at 656.977 trillion yen. That missed expectations for a decline of 2.0 percent on year following the upwardly revised 3.1 percent contraction in March (originally -3.2 percent).

Banknotes in circulation were down 2.0 percent on year, while coins in circulation slipped 1.4 percent. Current account balances stumbled an annual 5.4 percent, including a 2.6 percent drop in reserve balances. The adjusted monetary base slumped 14.2 percent on year at 639.753 trillion yen.

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

On Wall Street, stocks gave back some ground over the course of the trading day on Thursday but remained mostly higher. The tech-heavy Nasdaq hung on to a standout gain, ending the session at its best closing level in over a month.

The major averages moved to the downside going into the end of the day but still closed in positive territory. The Nasdaq jumped 264.40 points or 1.5 percent to 17,710.74, the S&P 500 climbed 35.08 points or 0.6 percent to 5,604.14 and the Dow rose 83.60 points or 0.2 percent to 40,752.96.

Meanwhile, with most major European markets closed for May Day, U.K. stocks showed a lack of direction over the course of the trading session. The U.K.'s FTSE 100 Index eventually ended the day just above the unchanged line.

Crude oil prices saw considerable volatility Thursday but moved sharply higher after President Donald Trump threatened to impose sanctions on any country that purchases Iranian oil. West Texas Intermediate crude for June delivery jumped $1.03 or 1.8 percent to $59.24 a barrel.