FX.co ★ Japanese Market Modestly Higher

The Japanese stock market extended its positive momentum from the previous session into Friday, showing moderate gains despite an overall negative climate from global markets overnight. The Nikkei 225 index is approaching the 38,700 mark, buoyed by strength in most sectors, particularly finance stocks. This follows reassurances from Prime Minister Ishiba and Bank of Japan Governor Kazuo Ueda that an interest rate hike is not imminent.

Currently, the Nikkei 225 Index has increased by 131.31 points, or 0.34%, reaching 38,683.37, after peaking earlier at 38,698.30. Following a strong finish on Thursday, Japanese equities continued their upward trajectory.

In terms of individual stocks, market heavyweight SoftBank Group has risen by 0.3%, while Fast Retailing, the owner of Uniqlo, has seen an increase of over 1%. Among automotive manufacturers, Honda has edged up by 0.3%, whereas Toyota has decreased by nearly 1%.

In the technology sector, Advantest is up nearly 1%, whereas Tokyo Electron has declined close to 2%, and Screen Holdings is down by about 1%.

Within the banking sector, Mitsubishi UFJ Financial has gained more than 2%, with Mizuho Financial and Sumitomo Mitsui Financial both rising over 1%.

Major exporters such as Mitsubishi Electric, Canon, and Sony are seeing small gains of 0.3 to 0.5%, while Panasonic has increased by nearly 1%.

Prominent gainers include M3, up almost 4%, and both Inpex and SMC, which have added more than 3% each. Additionally, companies like Mercari, Japan Steel Works, Sharp, ENEOS Holdings, JGC Holdings, and Tokyo Electric Power have all risen nearly 3%.

Conversely, Kawasaki Kisen Kaisha and Nippon Yusen K.K. have both dropped by more than 9%, with Mitsui O.S.K. Lines declining almost 7% and Ebara down nearly 3%.

In currency markets, the U.S. dollar is trading in the upper 146-yen range on Friday.

In the U.S., Wall Street saw another session of volatile trading on Thursday, continuing the lackluster performance from Wednesday. Major indices oscillated around the baseline before closing slightly down. The Nasdaq slipped by 6.65 points or less than a tenth of a percent to 17,918.48, the S&P 500 declined by 9.60 points or 0.2% to 5,699.94, and the Dow dropped 184.93 points or 0.4% to 42,011.59.

European markets also closed lower, with the French CAC 40 Index falling 1.3%, the German DAX Index decreasing by 0.8%, and the U.K.'s FTSE 100 Index down by 0.1%.

In commodities, crude oil prices surged on Thursday due to heightened tensions in the Middle East, specifically the Israel-Iran conflict, which stoked fears of supply disruptions. West Texas Intermediate Crude oil futures for November settled at $73.71 a barrel, marking a significant rise of $3.61 or 5.2%.