Japanese Market Recovers After Weak Start

(RTTNews) - After a weak start, the Japanese stock market is trading modestly higher on Wednesday, tracking a positive lead from Wall Street where the major averages moved up overnight on the back of some encouraging economic news.

The benchmark Nikkei 225 index, which declined to 15,853.5 in early trades, rose to 15,953 subsequently and is currently up 36 points or 0.2 percent at 15,925.3.

Nippon Meat Packers is trading higher by over 3.5 percent. Fast Retailing, Dainippon Sumitomo Pharma, Citizen Holdings and Nippon Paper Industries are gaining 2 to 2.6 percent.

Pioneer Corp., Tokai Carbon, Showa Denko KK, Kawasaki Kisen Kaisha, Dai-ichi Life Insurance, Oji Holdings, Hokuetsu Kishu Paper, JGC Corp., Mazda Motor, Hino Motors, Japan Tobacco and Alps Electric are advancing 1 to 1.6 percent.

Meanwhile, Mitsui Chemicals, Chubu Electric Power, Dowa Holdings, Nippon Sheet Glass, Heiwa Real Estate, Hitachi Zosen Corp., Nippon Steel & Sumitomo Metal Corp., Nippon Electric Glass and Inpex Corp. are trading weak, losing 1 to 2 percent.

In the currency market, the yen is trading at 104.33 to the U.S. dollar, little changed from its previous close.

Among other markets in the Asia-Pacific region, Shanghai is down marginally and Taiwan is trading slightly higher. Markets in Australia, New Zealand, South Korea, Malaysia, Singapore, Hong Kong and Indonesia are closed for Christmas Holiday.

On Wall Street, stocks ended mostly higher on Tuesday, due largely to a positive reaction to encouraging data on durable goods orders and new home sales for November.

The major averages closed moderately higher, near their best levels of the day. The Dow climbed 62.9 points or 0.4 percent to 16,357.6, the Nasdaq edged up 6.5 points or 0.2 percent to 4,155.4 and the S&P 500 rose 5.3 points or 0.3 percent to 1,833.3.

Major European markets ended modestly higher on Tuesday. The U.K.'s FTSE 100 index and the French CAC 40 index moved up by 0.2 percent and 0.1 percent, respectively. Ther German market remained closed.

U.S. crude oil ended higher on Tuesday, on hopes of a surge in demand following some upbeat manufactured durable goods orders data out of the U.S. Crude for February deliver ended up $0.31 or 0.3 percent at $99.22 a barrel on the New York Mercantile Exchange.