TOKYO (dpa-AFX) - The Japanese stock market is rebounding on Wednesday following the overnight gains on Wall Street after the U.S. Federal Reserve left interest rates unchanged and indicated it will remain patient with regard to future interest rate hikes.
The benchmark Nikkei 225 Index is rising 175.56 points or 0.85 percent to 20,732.10, after touching a high of 20,869.42 in early trades. Japanese shares fell on Wednesday.
The major exporters are mostly higher despite a stronger yen. Sony is rising more than 2 percent, Panasonic is adding 0.5 percent and Mitsubishi Electric is unchanged, while Canon is down 0.4 percent.
In the tech sector, Advantest is gaining almost 6 percent and Tokyo Electron is adding more than 1 percent. Sharp Corp. lowered its fiscal 2018 group sales and operating profit outlook due to the possible negative effects of the prolonged U.S.-China trade dispute.
Among the major automakers, Toyota is up 0.4 percent and Honda is rising 0.5 percent.
In the banking space, Mitsubishi UFJ Financial is up 0.4 percent and Sumitomo Mitsui Financial is higher by 0.6 percent. In the oil space, Japan Petroleum is rising more than 2 percent and Inpex is advancing almost 2 percent after crude oil prices rose overnight.
Among the major gainers, NEC Corp. is gaining more than 7 percent, TDK Corp. is higher by 6 percent and Toho Zinc is advancing more than 5 percent.
On the flip side, Sumitomo Dainippon Pharma is falling more than 13 percent, Cyberagent is losing more than 12 percent and Screen Holdings is lower by more than 11 percent.
In economic news, the Ministry of Economy, Trade and Industry said in Thursday's preliminary reading that industrial output in Japan fell a seasonally adjusted 0.1 percent on month in December. That exceeded expectations for a decline of 0.5 percent following the 1.0 percent drop in November.
Japan will also release December numbers for vehicle production, housing starts and construction orders today.
In the currency market, the U.S. dollar is trading in the upper 108 yen-range on Thursday.
On Wall Street, stocks closed sharply higher on Wednesday after the Federal Reserve announced its widely expected decision to leave interest rates unchanged and indicated it will remain patient regarding further rate hikes. The positive sentiment generated by the Fed statement added to the buying interest generated in reaction to earnings news from big-name companies like Boeing and Apple.
The Dow surged up 434.90 points or 1.8 percent to 25,014.86, the Nasdaq soared 154.79 points or 2.2 percent to 7,183.08 and the S&P 500 jumped 41.05 points or 1.6 percent to 2,681.05.
The major European markets ended mixed on Wednesday. While the German DAX Index fell by 0.3 percent, the French CAC 40 Index jumped by 1 percent and the U.K.'s FTSE 100 Index surged up by 1.6 percent.
Crude oil prices surged Wednesday, extending gains from the previous session on U.S. sanctions of Venezuelan oil. WTI crude for March ended up $0.92 or 1.7 percent at $54.23 a barrel on the New York Mercantile Exchange.
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