FX.co ★ Japanese Market Sharply Higher

The Japanese stock market experienced significant gains on Monday, building on the positive momentum from the previous session. The S&P/ASX 200 index surged past the 38,900 threshold, influenced by optimistic signals from Wall Street on Friday. This rally was characterized by robust performances across most sectors, with financial and technology stocks, influenced by key index players, leading the way following encouraging data showing headline inflation reaching a nine-month low.

The Nikkei 225 Index increased by 632.81 points, or 1.65%, reaching 38,916.66, after peaking earlier at 39,053.64. Japanese equities had already registered considerable advances by the close of trading on Friday.

Prominent market player SoftBank Group rose by over 4%, while Fast Retailing, known for operating Uniqlo, saw a gain of more than 3%. In the automobile sector, Honda and Toyota experienced gains of almost 1% and over 2%, respectively.

In the technology sector, Screen Holdings increased by over 1%, Tokyo Electron rose by more than 4%, and Advantest showed modest gains of 0.2%.

In banking, Sumitomo Mitsui Financial saw an almost 2% rise, Mizuho Financial edged up by 0.3%, and Mitsubishi UFJ Financial gained nearly 1%.

Among major exporters, Mitsubishi Electric and Sony achieved gains of nearly 2% each, while Canon rose marginally by 0.5%. However, Panasonic faced a decline of nearly 1%.

Among other notable performers, Keisei Electric Railway surged by over 12%, and Hoya increased by almost 4%. Conversely, Mercari experienced a decline of more than 3%.

In currency markets, the U.S. dollar was trading in the higher 153-yen range on Monday.

On Wall Street, stocks continued their upward trajectory, extending gains from Thursday’s session. The Dow led with a significant rise, reaching a new record closing high.

All major indices finished the day positively, with the Dow increasing by 426.16 points, or 1.0%, to 44,296.51. The S&P 500 climbed 20.63 points, or 0.4%, to 5,969.34, while the Nasdaq rose by 31.23 points, or 0.2%, to 19,003.65.

In Europe, major markets moved higher as well. The UK’s FTSE 100 Index climbed by 1.4%, the German DAX Index advanced by 0.9%, and the French CAC 40 Index rose by 0.6%.

Crude oil prices increased on Friday amid escalating concerns about the Russia-Ukraine conflict. West Texas Intermediate (WTI) crude oil futures for January concluded higher, up $1.14 or 1.6%, at $71.24 a barrel. WTI crude futures reflected a 6.5% gain over the week.