TOKYO (dpa-AFX) - The Japanese stock market is surging on Tuesday following the positive cues overnight from Wall Street after the U.S. Federal Reserve also announced plans to buy individual corporate bonds to support market liquidity.
Investors now look ahead to the Bank of Japan's monetary policy decision due later in the day. The BoJ is widely expected to keep its benchmark lending rate unchanged at -0.1 percent, although it may introduce other means of stimulus.
The benchmark Nikkei 225 Index is rising 657.95 points or 3.06 percent to 22,188.90, after touching a high of 22,234.26 earlier. Japanese shares closed near three-week lows on Monday.
Market heavyweight SoftBank Group is advancing more than 1 percent and Fast Retailing is higher by more than 2 percent.
The major exporters are notably higher despite a stronger yen. Canon, Mitsubishi Electric and Panasonic are all rising more than 3 percent each, while Sony is higher by more than 2 percent.
In the tech space, Advantest is climbing more than 5 percent and Tokyo Electron is gaining more than 4 percent. Among automakers, Honda Motor is higher by more than 6 percent and Toyota is advancing more than 3 percent.
In the oil sector, Inpex is rising almost 3 percent and Japan Petroleum is advancing more than 2 percent after crude oil prices rose overnight.
Among the major gainers, NTN Corp. is rising almost 5 percent, Nippon Light Metal is higher by almost 4 percent and Sojitz Corp. is advancing more than 3 percent.
In the currency market, the U.S. dollar is trading in the lower 107 yen-range on Tuesday.
On Wall Street, stocks closed higher on Monday after seeing initial weakness amid concerns about a second wave of coronavirus infections as Beijing recorded a spate of new Covid-19 cases in a major wholesale food market. Selling pressure waned after the New York Federal Reserve released a report showing regional manufacturing activity steadied in June after seeing sharp contractions in April and May. The Federal Reserve also announced plans to buy corporate bonds to support market liquidity and the availability of credit for large employers.
The Dow rose 157.62 points or 0.6 percent to 25,763.16, the Nasdaq surged up 137.21 points or 1.4 percent to 9,726.02 and the S&P 500 climbed 25.28 points or 0.8 percent at 3,066.59.
Meanwhile, the major European markets moved to the downside on Monday. The U.K.'s FTSE 100 Index slid by 0.7 percent, the French CAC 40 Index fell by 0.5 percent and the German DAX Index dipped by 0.3 percent.
Crude oil prices moved higher on Monday after seeing early weakness as hopes about production cuts outweighed concerns about the outlook for energy demand amid reports of spikes in coronavirus cases. WTI crude settled at $37.12 a barrel, gaining $0.86 or about 2.4 percent for the session.
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