FX.co ★ Japanese Market Notably Higher

The Japanese stock market continued its upward trajectory on Tuesday, with the Nikkei 225 surpassing the 39,800 mark, bolstered by positive global market trends. Gains were observed across key sectors including index heavyweights, exporters, and financial stocks. The Yen also reached a new 38-year low against the U.S. dollar.

The benchmark Nikkei 225 Index increased by 207.64 points, or 0.52 percent, to 39,838.70, after peaking at 39,929.67 earlier in the session. Japanese equities posted modest gains on Monday.

Notable movements among market heavyweights include SoftBank Group trading flat, while Uniqlo operator Fast Retailing increased by almost 1 percent. In the automotive sector, Honda rose by 1.5 percent and Toyota by over 1 percent.

In the technology arena, Advantest and Screen Holdings each posted nearly 1 percent gains, whereas Tokyo Electron experienced a slight decline of 0.3 percent.

The banking sector saw significant activity with Mitsubishi UFJ Financial climbing nearly 4 percent, while Mizuho Financial and Sumitomo Mitsui Financial both added close to 3 percent each.

Major exporters displayed predominantly positive performances. Panasonic dipped slightly by 0.1 percent, while Sony advanced over 1 percent, Mitsubishi Electric increased by almost 2 percent, and Canon edged up by 0.3 percent.

Among other major gainers, Daiichi Sankyo and Kawasaki Kisen Kaisha each rose by more than 4 percent. Dai-ichi Life, T&D Holdings, MS&AD Insurance, Mitsubishi Heavy Industries, and Daiwa Securities all saw increases of over 3 percent. Sompo Holdings, Mercari, and Hoya advanced nearly 3 percent each.

Conversely, Sumitomo Pharma and Dentsu Group faced declines of almost 3 percent each.

In the currency market, the U.S. dollar traded in the higher 161-yen range on Tuesday.

On Wall Street, stocks closed higher on Monday with a strong performance in the technology sector. The major averages started the session on a subdued note but gradually gained strength. The Dow gained 50.66 points, or 0.13 percent, to close at 39,169.52. The S&P 500 advanced by 14.61 points, or 0.27 percent, to 5,475.09, while the Nasdaq climbed by 146.70 points, or 0.83 percent, to 17,879.30.

European markets also showed positive movements, with Germany's DAX increasing by 0.3 percent and France's CAC 40 rising by 1.09 percent. The U.K.'s FTSE 100 edged up by 0.03 percent.

Crude oil prices surged on Monday amid expectations of higher demand, supply concerns, and production cuts by OPEC. West Texas Intermediate Crude oil futures closed higher by $1.84, or approximately 2.2 percent, at $83.38 per barrel.