On Tuesday, the Japanese stock market witnessed a significant rebound from the sharp losses experienced in the previous session. The Nikkei 225 climbed above the 38,500 mark, buoyed by broadly positive cues from Wall Street overnight, with notable gains across most sectors. Key performers included index heavyweights and technology stocks.
The benchmark Nikkei 225 Index rose by 400.69 points, or 1.05%, reaching 38,503.13, after hitting a high of 38,510.09 earlier in the session. This comes after Japanese shares ended substantially lower on Monday.
Major market player SoftBank Group slightly declined by 0.3%, while Fast Retailing, operator of Uniqlo, saw a near 1% increase. Among automakers, Honda surged almost 2%, and Toyota added nearly 1%.
In the technology sector, Advantest gained nearly 1%, with Screen Holdings and Tokyo Electron both up by almost 3%.
The banking sector showed mixed results: Mitsubishi UFJ Financial and Mizuho Financial experienced slight decreases of 0.1% to 0.4%, while Sumitomo Mitsui Financial edged up 0.4%.
Exporters displayed varied outcomes. Panasonic increased by nearly 1%, and Canon advanced 0.2%, while Sony and Mitsubishi Electric saw marginal declines of 0.1% to 0.3%.
Among other notable gainers, Dowa Holdings and TDK surged by more than 7% each, while Nissan Chemical and Rakuten Group rose by over 4% each. Mitsubishi Heavy Industries saw a more than 3% upturn, with Konami Group, DeNA, Nintendo, Murata Manufacturing, Fujitsu, NEXON, JTEKT, Sumco, and Asahi Group each adding nearly 3%.
Conversely, Mercari dropped almost 4%, and Takeda Pharmaceutical fell by more than 3%.
In the currency market, the U.S. dollar was trading in the higher 157 yen range on Tuesday.
On Wall Street, stocks initially lacked direction on Monday but moved significantly higher as the trading day progressed. Major indices all ended on a positive note, with the Nasdaq and the S&P 500 reaching record closing highs. The Nasdaq rose by 168.14 points, or 1.0%, to close at 17,857.02. The S&P 500 advanced by 41.63 points, or 0.8%, to 5,473.23, and the Dow climbed by 188.94 points, or 0.5%, to 38,778.10.
In Europe, market performance was mixed. The FTSE 100 Index in the U.K. edged down by 0.1%, while Germany's DAX Index rose by 0.4%, and France's CAC 40 Index advanced by 0.9%.
Crude oil prices hit a fresh six-week high on Monday, driven by optimism regarding energy demand prospects. West Texas Intermediate crude oil futures for July ended higher by $1.88, or about 1.25%, at $80.33 a barrel, marking the highest settlement since April 29.
