Japanese Market Extends Gains Amid Positive Global Cues

The Japanese stock market rose on Tuesday, extending gains from the previous two sessions. The benchmark Nikkei 225 Index climbed 0.68 percent to 27,185.91, though it remained below the 27,200 level. The rally followed broadly positive cues from Wall Street, where technology stocks led the advance. Prime Minister Fumio Kishida's statement that he is not yet considering declaring a state of emergency for Tokyo also provided a boost to market sentiment. Despite the gains, concerns over the continued surge in domestic COVID-19 cases limited the upside. Japan reported more than 70,000 daily new cases for the sixth consecutive day, with record highs in the last two weeks. Tokyo and 33 of the 47 prefectures remain under a quasi-state of emergency. The manufacturing sector, however, showed resilience, with a Jibun Bank survey indicating a faster pace of expansion in January, as the manufacturing PMI rose to 55.4 from 54.3 in December. Among individual stocks, SoftBank Group gained nearly 1 percent, while Fast Retailing fell more than 2 percent. Major exporters like Panasonic and Canon rose almost 1 percent each, and Mitsubishi Electric gained 1.5 percent. In the technology sector, Advantest and Tokyo Electron each rose nearly 1 percent. Conversely, some stocks faced sharp declines, with Pacific Metals surging more than 13 percent and NSK plunging over 10 percent. The U.S. dollar traded in the lower 115 yen-range on Tuesday. On Wall Street, the Nasdaq Composite rose 3.4 percent to 14,239.88, outperforming the Dow Jones Industrial Average and the S&P 500. European markets also saw gains, with the German DAX Index rising 1 percent and the French CAC 40 Index up 0.5 percent. The U.K.'s FTSE 100 Index, however, closed marginally lower.