(RTTNews) - The Japanese stock market was trading higher on Monday after the U.S. government announced Friday that it will provide emergency loans to beleaguered automakers General Motors Corp. and Chrysler LLC. A weaker yen also contributed to the positive investor sentiment. At 8:47 p.m. ET, the benchmark Nikkei 225 Stock Average was up 103.9 points or 1.2% at 8,692.5 after closing 0.9% lower on Friday. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was adding 12.2 points to 846.6.

In the currency market, the U.S. dollar traded in the upper 89-yen levels in early Tokyo deals. The dollar was quoted at 89.71-89.76 yen, up 0.79 yen from Friday’s close of 88.92-89.94 yen in Tokyo.

Wall Street finished mixed on Friday as the strong upward move in early trading, on the back of a government bailout of the auto industry, lost steam over the course of the day following a steep fall in oil prices. The Dow closed down 25.9 points or 0.3% at 8,579.1, while the Nasdaq rose 12.0 points or 0.8% to 1,564.3 and the S&P 500 advanced 2.6 points or 0.3% to 887.9.

Crude oil prices rose on Monday amid speculation that OPEC’s production cuts next month and U.S. economic stimulus plans will stabilize oil prices. At 7:53 p.m. ET, the contract for delivery in February was quoted at $43.19 a barrel, up 83 cents. The January contract, which expired on Friday, plunged 6.5% to $33.87 a barrel, the lowest settlement since February 10, 2004.

On the economic front, Ministry of Finance said in a report that Japan posted its second consecutive monthly merchandise trade deficit in November, led by the biggest ever decline in exports. The trade deficit totaled 223.42 billion yen compared to a deficit of 67.69 billion yen in October and a surplus of 85.68 billion yen in September. Exports fell 26.7% on year and imports declined 14.4%, the first decline since September 2007.

The convenience store and supermarket sales reports for November and the Bank of Japan’s monthly report for December are scheduled for release later in the day.

Major exporters were mixed in early trade though the U.S. dollar strengthened against the yen. Honda Motor surged up 4.0%, Komatsu gained 2.3% and Canon jumped 3.1%, while Toyota Motor lost 2.4% and Sony fell 0.8%.

Among high-tech stocks, Kyocera rose 2.5%, TDK Corp jumped 3.6% Advantest climbed 1.3% after the Nasdaq composite index finished higher on Friday. Among banks, Mitsubishi UFJ Financial Group surged up 4.3%, Mizuho Financial Group soared 5.1%, and Sumitomo Mitsui Financial Group advanced 4.1%.

Oil and gas miner Inpex Holdings rose 0.9%, but Nippon Mining Holding plunged 6.7%. Among other commodity-related stocks, Mitsubishi Corp. slipped 0.3% and Mitsui & Co. edged down 0.2%.

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Posted in Categories: Economy, Japan, Releases, USA.

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