FX.co ★ Japanese Market Slightly Higher

The Japanese stock market inched slightly higher on Tuesday, extending gains from the previous session. The Nikkei 225 rose above the 39,100 level amid mixed cues from Wall Street overnight, with particular strength noted among some index heavyweights and technology stocks.

The Nikkei 225 Index increased by 55.89 points, or 0.14%, to reach 39,125.57, after hitting a high of 39,346.15 earlier. Notably, Japanese shares saw a significant uptick on Monday.

Among market heavyweights, SoftBank Group rose 0.5%, and Fast Retailing, the operator of Uniqlo, edged up by 0.4%. In the automotive sector, Honda fell nearly 1%, and Toyota dipped 0.2%.

In the tech sector, Advantest gained over 2%, Tokyo Electron advanced almost 1%, and Screen Holdings edged up 0.1%.

The banking sector saw mixed results: Sumitomo Mitsui Financial edged down 0.1%, Mitsubishi UFJ Financial lost almost 1%, and Mizuho Financial declined by more than 2%.

Major exporters exhibited a mixed performance. Panasonic, Canon, and Sony experienced slight declines ranging from 0.1% to 0.5%, while Mitsubishi Electric edged up 0.1%. Significant gainers included MS&AD Insurance, which surged almost 16%, Tokio Marine up nearly 5%, and Fujikura gaining more than 4%. Additionally, ENEOS Holdings, Isetan Mitsukoshi, Tokyo Electric Power, Sharp, Alps Alpine, Disco, and Mitsui Mining & Smelting rose by over 3% each. NTN advanced nearly 3%.

On the downside, Sompo Holdings fell by 4.5%, while Daikin Industries declined almost 4%. Mercari, Shiseido, Sumitomo Pharma, Rakuten Group, and T&D Holdings each saw near 3% drops.

In the currency market, the U.S. dollar traded within the lower 156 yen range on Tuesday.

Wall Street experienced mixed movements during Monday's session after an initial rally. The tech-centric Nasdaq extended its recent strong gains, closing at a new record high, while the Dow retreated after closing above the 40,000 mark for the first time last Friday. The Nasdaq climbed 108.91 points, or 0.7%, to close at 16,794.87. The S&P 500 edged up 4.86 points, or 0.1%, to finish at 5,308.13, whereas the Dow fell by 196.82 points, or 0.5%, to settle at 39,806.77.

European markets on Monday posted gains. The U.K.'s FTSE 100 Index inched up by 0.1%, while the German DAX Index and the French CAC 40 Index both increased by 0.4%.

Crude oil prices were pressured lower on Monday amid concerns that the Federal Reserve might maintain higher interest rates for an extended period. West Texas Intermediate Crude futures declined to around $79.80, down $0.26 from the previous close.