TOKYO (dpa-AFX) - The Japanese stock market is advancing on Wednesday after U.S. stocks rallied overnight amid optimism about a new fiscal stimulus bill. Tech giant Apple's suppliers in Japan also advanced after the Nikkei reported that Apple plans to increase iPhone production in the first half of 2021.
The benchmark Nikkei 225 Index is adding 82.95 points or 0.31 percent to 26,770.79, after touching a high of 26,874.98 earlier. The Japanese market closed lower on Tuesday.
Market heavyweight SoftBank Group and Fast Retailing are adding 0.6 percent each. In the tech space, Advantest is declining more than 1 percent and Tokyo Electron is down 0.2 percent.
The Nikkei reported that Apple plans to increase iPhone production by about 30 percent in the first half of 2021 to 96 million following a surge in demand for the company's first-ever 5G handsets amid the pandemic.
Among Apple's Japan-based suppliers, Alps Alpine is rising more than 5 percent, Taiyo Yuden is advancing more than 1 percent, Kyocera is higher by almost 1 percent and Hitachi is adding 0.6 percent.
The major exporters are all higher despite a stronger yen. Panasonic is rising more than 3 percent, Canon is advancing more than 2 percent, Mitsubishi Electric is adding 0.6 percent and Sony is up 0.3 percent.
Among automakers, Toyota is advancing more than 1 percent and Honda is adding 0.3 percent. Honda is recalling 1.79 million vehicles worldwide, including 1.4 million vehicles in the U.S., over multiple issues.
In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are higher by almost 1 percent each.
Pasona Group is adding 0.7 percent after the Nikkei reported that the staffing agency plans to hire and groom 1,000 jobless college and high school graduates.
Among the other major gainers, Nippon Sheet Glass is gaining more than 7 percent, NTN Corp. is rising almost 6 percent and Mitsui E&S is higher by more than 5 percent each.
Conversely, Sumco Corp. and Yamaha Corp. are losing almost 3 percent each, while Yokogawa Electric is lower by 2 percent.
On the economic front, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in November, albeit at a slower pace, with a manufacturing PMI score of 49.7. That's up from 49.0, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Japan posted a merchandise trade surplus of 366.8 billion yen in November. That was well shy of expectations for a surplus of 529.8 billion yen and down sharply from 872.9 billion yen in October.
Exports were down 4.2 percent on year, missing forecasts for an increase of 0.5 percent following the 0.2 percent decline in the previous month. Imports tumbled an annual 11.1 percent versus expectations for a fall of 10.5 percent after sinking 13.3 percent a month earlier.
In the currency market, the U.S. dollar is trading in the upper 103 yen-range on Wednesday.
On Wall Street, stocks rallied on Tuesday mid unrelenting optimism lawmakers will eventually agree on a new fiscal stimulus bill. Stocks accelerated to the upside following news that House Speaker Nancy Pelosi has scheduled a meeting with other congressional leaders to discuss a relief package. The proposal calls for a previously unveiled $908 billion bipartisan relief plan to be split into two proposals that could be voted on separately in order to win approval. Adding to the positive sentiment, the Federal Reserve released a report showing U.S. industrial production rose by slightly more than expected in the month of November.
The Dow jumped 337.76 points or 1.1 percent to 30,199.31, the Nasdaq surged up 155.02 points or 1.3 percent to 12,595.06 and the S&P 500 shot up 47.13 points or 1.3 percent to 3,694.62.
Meanwhile, the major European markets turned in another mixed performance on Tuesday. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the French CAC 40 Index inched up by 0.1 percent and the German DAX Index surged up by 1.1 percent.
Crude oil prices moved higher on Tuesday amid easing concerns about the outlook for energy demand following the rollout of a coronavirus vaccine. WTI crude oil for January delivery climbed $0.63 or about 1.3 percent to $47.62 a barrel.
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