Japanese Market Notably Higher

(RTTNews) - The Japanese stock market is trading notably higher on Wednesday, extending the gains in the previous three sessions, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving up above the 38,000 mark, with gains in exporters, automakers and financial stocks partially offset by some gains in technology stocks. The benchmark Nikkei 225 Index is up 197.23 or 0.52 percent at 38,042.65, after touching a high of 38,097.95 earlier. Japanese stocks ended significantly higher on Tuesday.

Market heavyweight SoftBank Group is losing almost 1 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is edging up 0.3 percent and Toyota is adding almost 3 percent.

In the tech space, Advantest is losing almost 4 percent and Screen Holdings is down almost 1 percent, while Tokyo Electron is gaining more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.2 percent each, while Mizuho Financial is gaining almost 1 percent.

Among the major exporters, Canon is gaining almost 1 percent, Sony is adding almost 2 percent, Panasonic is edging up 0.4 percent and Mitsubishi Electric is up almost 2 percent.

Among other major gainers, Taiyo Yuden is surging more than 6 percent, while Itochu, Mitsubishi and Nidec are gaining almost 4 percent each. Yamaha, Nintendo, Recruit Holdings and Tosoh are adding more than 3 percent each, while Sumitomo Pharma, Tokyo Electric Power, Otsuka Holdings, Mitsui Mining & Smelting, Sumitomo Electric Industries and IHI are advancing almost 3 percent each.

Conversely, Mercari is losing almost 5 percent and Disco is declining almost 3 percent.

In economic news, the Bank of Japan will wrap up its monetary policy meeting on Wednesday and then announce its decision on interest rates. The BoJ is widely expected to keep its benchmark lending rate unchanged at 0.50 percent.

The value of overall core machine orders in Japan was down a seasonally adjusted 3.5 percent on month in January, the Cabinet Office said on Wednesday - coming in at 857.9 billion yen. That missed forecasts for a decline of 0.1 percent following the 0.8 percent decline in December.

On a yearly basis, orders rose 4.4 percent, again missing expectations for an increase of 6.9 percent, following the 4.3 percent gain in the previous month. For the first quarter of 2025, core machinery orders are seen lower by 2.2 percent on quarter and up 0.5 percent on year at 2.60 trillion yen.

The total value of machinery orders received by 280 manufacturers operating in Japan jumped 9.8 percent on month and 19.4 percent on year in January to 3.265 trillion yen.

Meanwhile, Japan posted a merchandise trade surplus of 584.5 billion yen in February, the Ministry of Finance said on Wednesday. That was shy of expectations for a surplus of 722.8 billion yen following the 2.736 trillion yen deficit in January.

Imports were down 0.7 percent on year at 8.606 trillion yen, missing forecasts for a gain of 0.1 percent following the 16.2 percent jump in the previous month. Exports were up an annual 11.4 percent to 9.191 trillion yen, missing forecasts for a gain of 12.1 percent after adding 7.3 percent a month earlier.

In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Wednesday.

On the Wall Street, stocks moved sharply lower during trading on Tuesday, giving back ground following the significant rebound seen over the two previous sessions. The major averages all moved to the downside, with the tech-heavy Nasdaq leading the pullback.

The major averages ended the day off their worst levels but still firmly negative. The Nasdaq tumbled 304.55 points or 1.7 percent to 17,504.12, the S&P 500 slumped 60.46 points or 1.1 percent to 5,614.66 and the Dow slid 260.32 points or 0.6 percent to 41,581.31.

Meanwhile, the major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.0 percent, the French CAC 40 Index climbed by 0.5 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

Crude oil prices settled lower on Tuesday as concerns about supply disruptions eased, while worries about global growth due to the impact of U.S. trade tariffs weighed. West Texas Intermediate Crude oil futures for April ended lower by $0.68 or 1 percent at $66.90 a barrel.