Japanese Market Notably Higher

(RTTNews) - Reversing the slight losses in the previous session, the Japanese stock market is now trading notably higher on Friday, following the mixed cues from Wall Street overnight. The benchmark Nikkei 225 is moving above the 38,500 level, with gains across most sectors led by index heavyweights, exporters and technology stocks, as traders react to a slew of domestic economic data.

The benchmark Nikkei 225 Index is gaining 179.24 points or 0.47 percent to 38,541.77, after touching a high of 38,610.35 earlier. Japanese stocks closed slightly lower on Thursday.

Market heavyweight SoftBank Group is gaining almost 3 percent, while Uniqlo operator Fast Retailing is edging down 0.1 percent. Among automakers, Honda is edging up 0.4 percent and Toyota is gaining almost 2 percent.

In the tech space, Advantest and Screen Holdings are gaining more than 2 percent each, while Tokyo Electron is edging up 0.5 percent.

In the banking sector, Mizuho Financial is edging down 0.2 percent, while Sumitomo Mitsui Financial is edging up 0.2 percent. Mitsubishi UFJ Financial is flat.

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

Among other major gainers, Furukawa Electric is surging almost 5 percent, while TDK and Taiyo Yuden are gaining more than 4 percent each. Murata Manufacturing, Recruit Holdings, NEC, Fuji Electric, Kansai Electric Power and Japan Steel Works are adding more than 3 percent each, while Disco, Sumitomo Electric Industries, Renesas Electronics, Mitsui & Co., Tokyo Electric Power and Nitto Denko are advancing almost 3 percent each.

Conversely, Terumo and Nitori Holdings are declining almost 3 percent each.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.7 percent in July, the Ministry of Internal Affairs and Communications or MIAC said on Friday. That was above forecasts for 2.5 percent, which would have been unchanged from the June reading. The jobs-to-applicant ratio was 1.24, exceeding expectations for 1.23, which again would have been unchanged. The participation rate was 63.5 percent, down from 63.7 percent in the previous month.

The MIAC also said consumer prices in the Tokyo region of Japan - considered a leading indicator for the nationwide trend - were up 2.5 percent on year in August. That exceeded expectations for an increase of 2.3 percent and was up from 2.2 percent in July. Core CPI, which excludes the volatile costs of food, were up an annual 2.4 percent. That topped forecasts for 2.2 percent, which would have been unchanged.

The value of retail sales in Japan was up 2.6 percent on year in July, the Ministry of Economy, Trade and Industry or METI said on Friday - coming in at 14.309 trillion yen. That missed forecasts for an increase of 2.8 percent and was down from 3.8 percent in June. Commercial Sales added 2.5 percent on month and 7.5 percent on year to 53.440 trillion yen. Wholesale sales rose 3.1 percent on month and 9.9 percent on year to 39.131 trillion yen.

The METI also said Industrial production in Japan was up a seasonally adjusted 2.8 percent on month in July, the Ministry of Economy, Trade and Industry said on Friday. That was shy of expectations for an increase of 3.6 percent following the 4.2 percent contraction in June. On a yearly basis, industrial production rose 2.7 percent. Upon the release of the data, the METI adjusted its assessment of industrial production, saying that it fluctuates indecisively. According to the METI's forecast of industrial production, output is expected to add 2.2 percent in August and fall 3.3 percent in September.

In the currency market, the U.S. dollar is trading in the higher 144 yen-range on Friday.

On Wall Street, stocks turned in a strong performance throughout much of the trading day on Thursday but gave back ground in the latter part of the session. The major averages pulled back well off their highs of the session, with the Nasdaq and the S&P 500 slipping into negative territory.

The tech-heavy Nasdaq dipped 39.69 points or 0.2 percent to 17,516.43 and the S&P 500 edged down 0.22 points or less than a tenth of a percent to 5,591.96, while the Dow managed to remain in positive territory, climbing 243.63 points or 0.6 percent to a new record closing high of 41,335.05.

Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the German DAX Index climbed by 0.7 percent and the U.K.'s FTSE 100 Index rose by 0.4 percent.

Crude oil prices settled sharply higher on Thursday on supply concerns amid reports Libya has shut off production and halted exports at several ports. West Texas Intermediate Crude oil futures for October climbed $1.39 or 1.87 percent at $75.91 a barrel.