The Japanese stock market is rebounding on Monday as investors shrugged off the weak cues from Wall Street on Friday as well as a stronger safe-haven yen. Nevertheless, worries about corporate earnings results and global economic growth weighed on sentiment.
The benchmark Nikkei 225 Index is adding 172.21 points or 0.81 percent to 21,356.81, after rising to a high of 21,465.99 in early trades. Japanese shares gave up early gains to end modestly lower on Friday.
The major exporters are higher despite a slightly stronger yen. Sony is advancing more than 1 percent, Panasonic is adding almost 1 percent, Mitsubishi Electric is higher by 0.5 percent and Canon is up 0.2 percent.
In the tech sector, Tokyo Electron is higher by 1 percent and Advantest is rising 0.5 percent.
Hitachi said Friday it will sell more than a 60 percent stake it holds in car navigation system subsidiary Clarion Co. to French auto parts maker Faurecia for about 89.9 billion yen. The electronic conglomerate’s shares are edging up 0.1 percent.
Among auto makers, Honda is rising more than 1 percent, while Toyota is declining almost 1 percent. In the banking sector, Mitsubishi UFJ Financial is declining 0.4 percent and Sumitomo Mitsui Financial is lower by almost 1 percent.
In the oil space, Japan Petroleum is advancing more than 2 percent and Inpex is adding 0.6 percent after crude oil prices rose on Friday.
Among the other major gainers, Kansai Electric Power and Shin-Etsu Chemical are gaining almost 7 perent each, while Chubu Electric Power is rising more than 5 percent and Daiwa House Industry is adding almost 4 percent.
On the flip side, Fujitsu is losing almost 5 percent, Cyberagent is declining more than 3 percent and NTT Docomo is lower by more than 1 percent.
In economic news, Japan will release retail sales figures for September today.
In the currency market, the U.S. dollar is trading in the upper 111 yen-range on Monday.
On Wall Street, stocks extended their recent see-saw performance with a sharp pullback on Friday amid a negative reaction to corporate results from some big-name companies. Traders largely shrugged off a report from the Commerce Department showing stronger than expected U.S. economic growth in the third quarter.
The Dow slumped 296.24 points or 1.2 percent to 24,688.31, the Nasdaq plummeted 151.12 points or 2.1 percent to 7,167.21 and the S&P 500 tumbled 46.88 points or 1.7 percent to 2,658.69.
The major European markets also showed significant moves to the downside on Friday. While the French CAC 40 Index tumbled by 1.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index both dropped by 0.9 percent.
Crude oil prices rose on Friday amid expectations that sanctions on Iran will tighten supply. WTI crude for December added $0.26 or 0.4 percent at $67.59 a barrel on the New York Mercantile Exchange.