TOKYO (dpa-AFX) - The Japanese stock market is trading significantly higher on Tuesday, recouping the losses in the previous two sessions, with the benchmark Nikkei index just below the 29,000 mark, following the broadly positive cues from Wall Street overnight, with strength in most sectors amid easing concerns about the economic impact of the Omicron variant of the coronavirus.
The benchmark Nikkei 225 Index is gaining 283.66 points or 0.99 percent to 28,960.12, after touching a high of 29,121.01 earlier. Japanese shares closed modestly lower on Monday.
Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is edging up 0.3 percent. Among automakers, Honda is adding more than 1 percent and Toyota is gaining almost 1 percent.
In the tech space, Advantest is adding almost 2 percent, Tokyo Electron is gaining more than 2 percent and Screen Holdings is up more than 1 percent. In the banking sector, Mitsubishi UFJ Financial is adding 0.5 percent and Sumitomo Mitsui Financial is edging up 0.2 percent and Mizuho Financial is up almost 1 percent.
The major exporters are higher. Panasonic is gaining 1.5 percent, Canon is adding almost 1 percent, Mitsubishi Electric is up more than 1 percent and Sony is advancing more than 2 percent.
Among the other major gainers, Konami Holdings, Olympus and Shinsei Bank are gaining almost 3 percent each.
Conversely, there were no major losers.
In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.8 percent in November, the Ministry of Internal Affairs and Communications said on Tuesday. That missed expectations for 2.7 percent, which would have been unchanged from the October reading. The jobs-to-applications ratio was 1.15, unchanged from the previous month but shy of expectations for 1.16. The participation rate was 62.0 - unchanged and in line with forecasts.
Meanwhile, industrial production in Japan climbed a seasonally adjusted 7.2 percent on month in November, the Ministry of Economy, Trade and Industry said on Tuesday. That beat expectations for an increase of 4.8 percent and was up from the 1.8 percent gain in October. On a yearly basis, industrial production improved 5.4 percent - again topping forecasts for a gain of 2.5 percent following the 4.1 percent contraction in the previous month. Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it now showing signs of an upward movement.
In the currency market, the U.S. dollar is trading in the higher 114 yen-range on Tuesday.
On Wall Street, stocks moved sharply higher during trading on Monday, adding to the strong gains posted last week. With the continued upward move, the S&P 500 reached a new record closing high.
The Nasdaq and the S&P 500 reached new highs going into the close of trading. The Dow jumped 351.82 points or 1 percent to 36,302.38, the Nasdaq spiked 217.89 points or 1.4 percent to 15,871.26 and the S&P 500 surged 65.40 points or 1.4 percent to 4,791.19.
The major European markets also closed mostly higher on the day. While the U.K. markets were closed for a holiday, the French CAC 40 Index advanced 0.8 percent and the German DAX Index rose 0.5 percent.
Crude oil futures ended sharply higher Monday amid hopes the Omicron variant will not any significantly impact global economic recovery. West Texas Intermediate Crude oil futures for February ended up by $1.78 or 2.4 percent at $75.57 a barrel.
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