TOKYO (dpa-AFX) - The Japanese stock market is rising on Tuesday, extending gains from the previous session following the positive cues overnight from Wall Street. Investors are optimistic that central banks around the world will take action to counteract the impact of the coronavirus on the global economy.
The benchmark Nikkei 225 Index is advancing 204.56 points or 0.96 percent to 21,548.64, after touching a high of 21,719.78 in early trades. Japanese stocks reversed early losses to end sharply higher on Monday.
Market heavyweight SoftBank is higher by more than 1 percent and Fast Retailing is advancing almost 1 percent. In the tech space, Advantest is rising more than 1 percent and Tokyo Electron is up 0.5 percent.
The major exporters are higher despite a stronger safe-haven yen. Sony and Canon are rising more than 1 percent each, while Mitsubishi Electric is advancing almost 1 percent and Panasonic is up 0.1 percent.
Among auto stocks, Honda Motor and Toyota Motor are higher by more than 1 percent each. In the oil sector, Japan Petroleum is advancing more than 1 percent and Inpex is adding almost 1 percent after crude oil prices gained more than 4 percent overnight.
Among the major gainers, Comsys Holdings is rising more than 2 percent and Sony Financial is advancing almost 2 percent.
On the flip side, Cyberagent and Keisei Electric are losing more than 2 percent each.
In economic news, the monetary base in Japan was up 3.6 percent on year in February, the Bank of Japan said on Tuesday - coming in at 510.631 trillion yen. That follows the 2.9 percent increase in January.
Japan will also see February figures its consumer confidence index today.
In the currency market, the U.S. dollar is trading in the lower 108 yen-range on Tuesday.
On Wall Street, stocks rebounded on Monday partly due to bargain hunting, with traders picking up stocks at reduced levels following the sell-off seen in recent sessions. Traders also seemed optimistic about central banks around the world taking action to counteract the impact of the coronavirus on the global economy. Last Friday, Federal Reserve Chairman Jerome Powell said the central bank will 'act as appropriate to support the economy' amid the evolving risks posed by the coronavirus outbreak.
The Dow skyrocketed 1,293.96 points or 5.1 percent to 26,703.32, the Nasdaq soared 384.80 points or 4.5 percent to 8,952.16 and the S&P 500 spiked 136.01 points or 4.6 percent to 3,090.23.
The major European markets turned in a mixed performance on Monday. While the German DAX Index fell by 0.3 percent, the French CAC 40 Index rose by 0.5 percent and the U.K.'s FTSE 100 Index surged up by 1.1 percent.
Crude oil prices rallied sharply on Monday as traders created fresh positions, betting on hopes the Organization of the Petroleum Exporting Countries and its allies will significantly cut crude production. WTI crude for April surged $1.99 or about 4.5 percent to $46.75 a barrel.
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