TOKYO (dpa-AFX) - The Japanese stock market is extending its winning streak on Wednesday, buoyed by a weaker yen and the overnight gains on Wall Street amid optimism about the reopening of economies as well as hopes of more government stimulus.
The benchmark Nikkei 225 Index is gaining 448.98 points or 2.01 percent to 22,774.59, after touching a high of 22,818.87 in early trades. Japanese shares hit a more than three-month high on Tuesday.
Market heavyweight Fast Retailing is higher by more than 3 percent, while SoftBank Group is declining almost 1 percent.
The major exporters are higher on a weaker yen. Panasonic and Canon are advancing almost 2 percent each, while Sony is adding 0.5 percent and Mitsubishi Electric is up 0.3 percent.
In the tech space, Advantest is rising almost 3 percent and Tokyo Electron is higher by almost 2 percent. Among automakers, Honda Motor is adding more than 2 percent and Toyota is advancing more than 1 percent.
In the oil sector, Inpex is higher by more than 2 percent and Japan Petroleum is up more than 1 percent after crude oil prices rose to a nearly three-month high overnight.
Among the major gainers, Marui Group is rising 6 percent, NSK is gaining almost 6 percent and Nissan Motor is rising almost 5 percent.
On the flip side, Cyberagent and NEC Corp. are lower by almost 2 percent each.
On the economic front, the latest survey from Jibun Bank revealed that the services sector activity in Japan continued to contract in May, albeit at a slower rate, with a PMI score of 26.5. That's up from 21.5 in April, although it remains well beneath the boom-or-bust line of 50 that separates expansion from contraction. The composite index improved to 27.8 in May, up from the record low of 25.8 in April.
In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Wednesday.
On Wall Street, stocks closed higher on Tuesday amid optimism about an economy recovery as businesses reopen following the coronavirus-induced shutdown. Economists have repeatedly warned that the recovery will take time, but traders have seemingly shrugged off those concerns as stocks continue to recover from their March low. Traders have also largely ignored the mass protests across the country in response to the death of George Floyd at the hands of Minneapolis police officers.
The Dow jumped 267.63 points or 0.6 percent to 25,742.65, the Nasdaq climbed 56.33 points or 0.6 percent to 9,611.22 and the S&P 500 advanced 25.09 points or 0.8 percent to 3,080.82.
The major European markets also moved to the upside on Tuesday. While the German DAX Index spiked by 3.8 percent, the French CAC 40 Index jumped by 2 percent and the U.K.'s FTSE 100 Index advanced by 0.9 percent.
Crude oil prices settled at a nearly three-month high on Tuesday amid expectations the OPEC-led productions cuts will be extended well beyond the previously agreed period. Crude for July delivery surged up $1.37 or nearly 4 percent to $36.81 a barrel.
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