FX.co ★ Japanese Market Slightly Higher

The Japanese market showed slight gains on Thursday, rebounding from previous losses, guided by mixed signals from Wall Street. The Nikkei 225 edged above the 38,900 mark, bolstered by strengths in financial stocks and major index players, though tempered by declines in exporters and automakers.

Investors are treading carefully in anticipation of the Bank of Japan's upcoming monetary policy decision, with expectations that the central bank will maintain current interest rates.

Currently, the benchmark Nikkei 225 Index has risen by 29.01 points, or 0.07 percent, to 38,905.72, after reaching an intraday high of 39,252.44. This comes after a significant drop in Japanese shares on Wednesday.

Leading the gains, SoftBank Group has increased by over 2 percent, while Fast Retailing, the operator of Uniqlo, has added nearly 1 percent. Conversely, in the automotive sector, Toyota has declined by almost 2 percent, with Honda down almost 1 percent.

In the technology sector, Advantest has advanced nearly 3 percent, whereas Tokyo Electron and Screen Holdings are both down by about 1 percent.

The banking sector sees Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial each falling by over 1 percent.

Among the major exporters, Canon has dropped by almost 2 percent, Mitsubishi Electric by nearly 3 percent, and Panasonic by around 1 percent, while Sony has gained more than 1 percent.

Notable gainers include Renesas Electronics, which has surged nearly 7 percent. Mitsubishi Heavy Industries, CyberAgent, and Taiyo Yuden have each increased by over 3 percent. Disco, Daikin Industries, Recruit Holdings, and Murata Manufacturing have all added almost 3 percent.

Conversely, Sumitomo Pharma has declined by nearly 4 percent. Other decliners, including Konica Minolta, Denka, Tokyo Electric Power, Chubu Electric Power, and Sumitomo Chemical, have dropped by over 3 percent each. Additionally, T&D Holdings, Astellas Pharma, Concordia Financial, Mitsubishi Chemical, and Kansai Electric Power have fallen by nearly 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 156 yen range on Thursday.

On Wall Street, stock volatility was observed after an early rally spurred by lower-than-expected consumer price inflation data. However, markets closed mostly higher after the Federal Reserve's monetary policy announcement. The Nasdaq surged 264.89 points, or 1.5 percent, to a record close of 17,608.44. Similarly, the S&P 500 hit a record close, jumping 45.71 points, or 0.9 percent, to 5,421.03. In contrast, the Dow dropped by 35.21 points, or 0.1 percent, closing at 38,712.21.

Key European markets also climbed significantly. The German DAX Index rose by 1.4 percent, the French CAC 40 Index jumped by 1.0 percent, and the U.K.'s FTSE 100 Index advanced by 0.8 percent.

Crude oil prices rose on Wednesday amid expectations of increased demand and tighter supplies, along with a weaker dollar. West Texas Intermediate Crude oil futures for July increased by $0.60, reaching $78.50 a barrel.