The Japanese market continued its upward trajectory for the fifth consecutive session, significantly rising on Thursday, buoyed by favorable global market trends overnight. The Nikkei 225 index is trading just below the 38,900 mark, driven by gains in major index components and technology stocks.
The benchmark Nikkei 225 Index has increased by 298.22 points or 0.78 percent to 38,897.53, achieving an earlier peak of 38,958.19. On Wednesday, Japanese shares saw a modest rise.
Among the market heavyweights, SoftBank Group has advanced by over 1 percent, and Fast Retailing, the operator of Uniqlo, has inched up by 0.4 percent. In the automotive sector, Toyota has dropped by more than 2 percent, while Honda has declined nearly 3 percent.
Within the technology sector, Advantest has surged by more than 3 percent, Tokyo Electron has added almost 4 percent, and Screen Holdings has risen by over 1 percent.
In the banking sector, Sumitomo Mitsui Financial has grown by nearly 1 percent. In contrast, Mizuho Financial has fallen by more than 2 percent, and Mitsubishi UFJ Financial has seen a significant decrease of over 5 percent.
Major exporters showed mixed results: Canon has dipped by nearly 1 percent, Panasonic has slid by over 1 percent, while Mitsubishi Electric and Sony have both gained almost 1 percent.
Notable gainers include Recruit Holdings, which has soared by more than 6 percent, Credit Saison with a rise of nearly 6 percent, and Ebara which has added more than 4 percent. Isetan Mitsukoshi, Keyence, and CyberAgent have each advanced by over 3 percent, while Terumo, Disco, and Fujikura have risen by almost 3 percent each.
Conversely, Nisshin Seifun and Nippon Paper Industries have plummeted by more than 9 percent each. Sumitomo Chemical has decreased by almost 8 percent, Sumitomo Pharma by more than 6 percent, and T&D Holdings by nearly 6 percent. Konica Minolta and Mercari have both declined by over 4 percent, and Mazda Motor, Nissan Motor, Mitsubishi Motors, NTN, and NEXON have each fallen by nearly 4 percent. Isuzu Motors and NSK have lost more than 3 percent each.
In economic updates, Japan's GDP contracted by a seasonally adjusted 0.5 percent quarter-on-quarter in Q1 2024, as reported by the Cabinet Office on Thursday. This was worse than the expected 0.3 percent decline, following a 0.2 percent increase in the previous quarter. Annually, GDP fell by 2.0 percent, missing forecasts of a 1.5 percent decline, after rising 0.4 percent in the prior three months.
In the currency market, the U.S. dollar is trading in the upper 153 yen range on Thursday.
On Wall Street, stocks surged higher on Wednesday following favorable consumer price inflation data. The major averages built on Tuesday's gains, reaching new record closing highs.
Late-session gains pushed the tech-heavy Nasdaq up by 231.21 points or 1.4 percent to 16,742.39. The S&P 500 increased by 61.47 points or 1.2 percent to 5,308.15, and the Dow rose by 349.89 points or 0.9 percent to 39,908.00.
European markets also saw positive movement, with the German DAX Index advancing by 0.8 percent and both the U.K.'s FTSE 100 Index and the French CAC 40 Index rising by 0.2 percent.
Crude oil prices increased on Wednesday, driven by softer inflation data and a report indicating a larger-than-expected drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for June closed up by $0.61 or 0.78 percent at $78.63 a barrel.