In a turnaround from the past three sessions’ sharp losses, Japanese stock markets soared on Tuesday, with the Nikkei 225 Index surging by 3,000 points to comfortably exceed the 34,400 mark. This rally occurred despite a broadly negative outlook from global markets overnight, showcasing robust gains across all sectors, particularly among index heavyweights and technology stocks.
The Nikkei 225 Index climbed 3,013.36 points, or 9.58%, to reach 34,471.78, after hitting an earlier high of 34,911.80. The previous session saw Japanese shares closing significantly lower.
Market heavyweight SoftBank Group experienced a gain of nearly 10%, while Uniqlo operator Fast Retailing increased by over 3%. In the automotive sector, Honda soared almost 16% and Toyota surged more than 11%.
In the technology sector, Advantest and Screen Holdings saw gains of nearly 10% each, whereas Tokyo Electron surged almost 15%.
In the banking sector, Mitsubishi UFJ Financial advanced almost 7%, Mizuho Financial increased by nearly 6%, while Sumitomo Mitsui Financial dipped almost 2%.
Among major exporters, Panasonic and Sony both gained about 7% each, Mitsubishi Electric added over 6%, and Canon rose by more than 3%.
Notable gainers included Kikkoman, which skyrocketed almost 21%. Isetan Mitsukoshi, Renesas Electronics, and Ebara each surged by more than 18%. UBE, Kawasaki Kisen Kaisha, Tokio Marine, Orix, and Hoya each soared by over 17%, while Amada and GS Yuasa rose almost 17% each. Nitto Denko and Kuraray gained nearly 16% apiece.
Conversely, Ajinomoto plunged more than 7%, and Yamato Holdings fell by over 3%.
On the economic front, the Ministry of Internal Affairs and Communications reported that Japan's average household spending in June seasonally adjusted rose by 0.1% month-on-month to 280,888 yen. This increase trailed the expected 0.2% rise and followed a 0.3% decline in May. Year-over-year, household spending fell by 1.4%, missing forecasts for a 0.9% decline after a 1.8% drop in the previous month. The average monthly income per household rose by 3.1% year-over-year to 957,457 yen.
In the currency market, the U.S. dollar traded in the higher 144 yen range on Tuesday.
On Wall Street, stocks sharply declined during Monday’s trading session, extending the prior week’s sell-off. All major averages saw significant drops, with the Nasdaq and the S&P 500 reaching three-month lows.
The major averages closed off their session lows but remained firmly negative. The Nasdaq plummeted 576.08 points, or 3.4%, to 16,200.08; the S&P 500 fell 160.23 points, or 3.0%, to 5,186.33; and the Dow tumbled 1,033.99 points, or 2.6%, to 38,703.27.
Significant downward movement also occurred in major European markets. The UK’s FTSE 100 Index dropped by 2.0%, the German DAX Index declined by 1.8%, and the French CAC 40 Index fell by 1.4%.
Crude oil prices declined on Monday due to concerns over demand outlook amid fears of a potential U.S. recession. West Texas Intermediate crude oil futures for September dropped by $0.58, or 0.7%, to $72.94 per barrel.
