TOKYO (dpa-AFX) - The Japanese stock market is advancing on Friday following the overnight gains on Wall Street and despite a stronger yen. Data showing that Japan's economy grew at a faster than expected pace in the second quarter boosted sentiment.
The benchmark Nikkei 225 Index is adding 149.13 points or 0.72 percent to 20,742.98, after rising to a high of 20,782.06 in early trades. Japanese stocks closed modestly higher in choppy session on Thursday.
The major exporters are mostly lower on a stronger yen. Sony is rising more than 2 percent, while Mitsubishi Electric is lower by 0.6 percent, Panasonic is declining 0.5 percent and and Canon is down 0.2 percent.
In the tech space, Advantest is declining more than 1 percent, while Tokyo Electron is edging up 0.1 percent.
Market heavyweight SoftBank is rising almost 1 percent, while Fast Retailing is edging up 0.1 percent. In the auto sector, Toyota Motor is adding 0.2 percent, while Honda Motor is edging up 0.1 percent.
Among oil stocks, Inpex is rising almost 3 percent and Japan Petroleum is higher by almost 2 percent after crude oil prices rebounded overnight.
Among the other major gainers, Shiseido Co. is gaining almost 9 percent, Bandai Namco is higher by more than 5 percent and Pacific Metals is rising almost 5 percent.
On the flip side, Shinsei Bank is losing more than 10 percent, Nippon Paper Industries and Taiheiyo Cement are lower by more than 7 percent each.
On the economic front, the Cabinet Office said that Japan's gross domestic product gained a seasonally adjusted 0.4 percent on quarter in the second quarter of 2019. That beat expectations for an increase of 0.1 percent following the upwardly revised 0.7 percent gain in the previous three months.
The Bank of Japan said that the M2 money stock in Japan was up 2.4 percent on year in July, coming in at 1,031.0 trillion yen. That exceeded expectations for an increase of 2.3 percent, which would have been unchanged from the previous month. The M3 money stocks was up an annual 2.0 percent - unchanged and in line with expectations.
In the currency market, the U.S. dollar is trading in the upper 105 yen-range on Friday.
On Wall Street, stocks closed higher on Thursday, extending gains from the previous session, partly reflected a positive reaction to a report from the Chinese customs office showing unexpected annual growth in Chinese exports. The data eased concerns about the impact of the U.S.-China trade dispute even though it reflects a period before the latest escalation in the trade war.
The Dow surged up 371.12 points or 1.4 percent to 26,378.19, the Nasdaq soared 176.33 points or 2.2 percent to 8,039.16 and the S&P 500 spiked 54.11 points or 1.9 percent to 2,938.09.
The major European markets showed even strong moves to the upside on Thursday. While the French CAC 40 Index spiked by 2.3 percent, the German DAX Index jumped by 1.7 percent and the U.K.'s FTSE 100 Index surged up by 1.2 percent.
Crude oil futures rallied sharply on Thursday, amid speculation oil producers may consider reducing output, aiming to drain global oil inventories. WTI crude for September ended up $1.45 or 2.84 percent at 52.54 a barrel.
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