Japanese Index Rises Supported by Wall Street Gains and Lower Oil Prices

A Positive Trading Session in Tokyo

The Japanese financial markets experienced a positive trading session today. The Japanese index rose, supported by strong gains recorded overnight on Wall Street. A recent drop in global crude oil prices also boosted local investor sentiment. The Nikkei index rose 0.2 percent to end the morning session at 70,081.53 points. The broader Topix index also climbed 0.4 percent to reach 4,163.61 points. Market breadth remained positive throughout the morning trading hours. Of the 225 stocks listed on the Nikkei index, 140 rose today. Eighty-two stocks fell, while three remained completely unchanged during the session.

Technology Stocks Perform Mixed

The three major U.S. indexes rose overnight, setting a positive tone for Asian markets. The technology-focused Nasdaq Composite hit a record high amid a surge in major tech shares. However, shares of Japanese technology companies delivered a mixed performance today. Advantest, a manufacturer of electronic chip equipment, rose 1.7 percent. Conversely, SoftBank Group saw its shares decline by a significant 2.7 percent. Japan remains heavily dependent on imported energy, particularly shipments from the Middle East. Lower oil prices reduce operational costs for many large Japanese manufacturing corporations. Investors are also closely monitoring the results of Japan’s 10-year government bond auction.

Awaiting the Central Bank

Yields have hit their highest levels in decades amid concerns about expansionary fiscal policies. The recent wave of French sovereign debt selling also impacts global bond markets heavily. Bank of Japan Governor Kazuo Ueda will deliver a highly anticipated speech later today. Make informed financial decisions with the latest global economic data. Read more essential market analysis at Oman Day.