Japanese Market Significantly Higher

(RTTNews) - The Japanese stock market is trading significantly higher on Wednesday, extending the sharp gains in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving well above the 58,500 level, with gains across most sectors led by financial and technology stocks.

Meanwhile, the Bank of Japan is said to be considering lifting its inflation forecast at its policy meeting later in the month to reflect higher energy costs, though it is still expected to keep rates unchanged.

The benchmark Nikkei 225 Index is up 662.30 or 1.14 percent at 58,539.69, after touching a high of 58,574.60 earlier. Japanese stocks ended sharply higher Tuesday.

Market heavyweight SoftBank Group is gaining almost 4 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is adding almost 1 percent and Toyota is gaining more than 1 percent.

In the tech space, Advantest is advancing almost 4 percent and Tokyo Electron is gaining more than 1 percent, while Screen Holdings is losing more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is adding almost 2 percent, Mizuho Financial is advancing more than 2 percent and Mitsubishi UFJ Financial is gaining more than 1 percent.

Among the major exporters, Mitsubishi Electric is losing more than 1 percent and Panasonic is edging down 0.4 percent, while Canon is gaining more than 2 percent and Sony is adding more than 2 percent.

Among other major gainers, BayCurrent is soaring more than 14 percent, Taiyo Yuden is jumping almost 9 percent and LY is surging more than 6 percent, while Hitachi and Mercari are advancing more than 5 percent each. Sumitomo Pharma, Fujitsu, NEC and Nomura Research Institute are rising more than 4 percent each, while Trend Micro and Oriental Land are gaining almost 4 percent each, while Daiichi Sankyo and Yokohama Rubber are adding more than 3 percent.

Conversely, Ibiden and Kioxia Holdings declining more than 5 percent each, while Japan Steel Works is slipping almost 5 percent. Inpex, Mitsui Kinzoku, Furukawa Electric and Mitsubishi Heavy Industries are losing more than 4 percent each, while JGC Holdings, Yokogawa Electric, Kawasaki Heavy Industries and Takashimaya are sliding almost 4 percent each. Toho, J. Front Retailing, Sumitomo Electric Industries and Tokyo Electric Power are down more than 3 percent each.

In economic news, the value of core machinery orders in Japan was up a seasonally adjusted 13.6 percent on month in February, the Cabinet Office said on Wednesday - coming in at 1.115 trillion yen. That beat forecasts for a decline of 1.1 percent following the 5.5 percent decline in January.

On a yearly basis, orders jumped 24.7 percent - again exceeding estimates for 8.5 percent following the 13.7 percent increase in the previous month. For the first quarter of 2026, core machinery orders are expected to slip 4.2 percent on quarter and rise 2.4 percent on year.

The total value of machinery orders received by 280 manufacturers operating in Japan fell 5.0 percent on month and gained 13.1 percent on year in February.

In the currency market, the U.S. dollar is trading in the higher 158 yen-range on Wednesday.

On the Wall Street, stocks moved sharply higher during trading on Tuesday, extending the strong upward move seen over the course of Monday's session. The major averages all moved to the upside, with the tech-heavy Nasdaq leading the charge.

The major averages ended the day at or near their highs of the session. The Nasdaq surged 455.35 points or 2 percent to 23,639.08, the S&P 500 jumped 81.14 points or 1.2 percent to 6,967.38 and the Dow climbed 317.74 points or 0.7 percent to 48,535.99. The major European markets also moved to the upside on the day. While the German DAX Index shot up by 1.3 percent, the French CAC 40 Index jumped by 1.1 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

Crude oil prices plunged on Tuesday amid news about potential negotiations. In addition, the International Energy Agency's report cautioning crude oil "demand destruction" weighed on prices. West Texas Intermediate crude for May delivery was down $7.18 or 7.25 percent at $91.90 per barrel.