(RTTNews) - The Japanese stock market was trading higher on Friday as stronger than expected U.S. GDP data helped ease concerns about the health of the world’s biggest economy.

At 8.56 P.M. ET, the benchmark Nikkei 225 Index was advancing 187.31 points or 1.47% to 12,955.56, while the broader Topix Index of all First Section Issues was up 20.93 points to 1,240.46.

The Japanese stock market closed mixed on Thursday after posting gains in the previous two trading sessions. The Nikkei 225 index closed up 15.29 points or 0.12% at 12,768.25, while the Topix Index lost 4.16 points or 0.3% to finish at 1,219.53.

U.S. stocks turned in solid gains across the board on Thursday as traders were bolstered by strong economic data. The country’s gross domestic product increased a higher-than-expected 3.3% annualized for the second quarter and jobless claims fell for a third consecutive week.

Crude prices turned lower on Thursday as the International Energy Agency has pledged to release additional oil supplies in the event of storm damage. Light sweet crude for October delivery closed at $115.59, down $2.56 on the New York Mercantile Exchange, after hitting as high as $120.50 amid concerns Tropical Storm Gustav could cause problems in the Gulf of Mexico’s oil region.

On the economic front, Japan is scheduled to release a raft of data on Friday. Data including consumer price inflation, industrial production and jobless rate were announced ahead of the opening of the stock markets. Later in the day, Japan will announce July numbers for vehicle sales, housing starts and construction orders in addition to the August small business confidence score.

Core inflation in Japan increased the most in more than a decade in July. The Ministry of Internal Affairs and Communications said that core CPI increased 2.4% in July from a year earlier. Overall CPI rose 2.3% in July, the fastest since October 1997 when it rose 2.5% and also the tenth consecutive monthly increase.

The Ministry of Internal Affairs and Communications also said that the unemployment rate in Japan eased to 4.0% in July, down from the two-year high of 4.3% in June and below analyst expectations of 4.1%. The job-to-applicant ratio stood at 0.89 in July, down from 0.91 in June and below forecasts of 0.90.

Meanwhile, retail sales in Japan increased 1.9% in July from a year ago, according to data published Friday by the Ministry of Economy, Trade and Industry. Retail sales for the month totaled 11.55 trillion yen, or US$105.5 billion. July marked the twelfth straight month of increases in overall retail sales, which rose 0.3% in June.

In the currency market, the U.S. dollar was trading in the lower 109-yen level on Friday. In early trades, the dollar was quoted in a range of 109.32-109.33 yen, up 0.43 yen from Thursday’s close of 108.89-108.92 yen in Tokyo.

Financial stocks advanced following the overnight gains by U.S. housing financing giants and bond insurers on Wall Street. Mitsubishi UFJ gained 2.10%, Mizuho Financial advanced 1.99%, Sumitomo Mitsui climbed 1.56% and Resona Holdings gained 0.82%. In the tech sector, Advantest added 0.43%, Kyocera rose 2.22%, Fanuc advanced 0.86%, Matsushita Electrical Industrial gained 1.81% and NEC climbed 2.63%.

Automaker Toyota climbed 1.68%, Honda advanced 1.43%, Mazda Motors gained 1.94%, Mitsubishi Motors added 1.25% and Nissan improved 1.23%. Among the other major exporters, camera maker Canon climbed 1.67%, electronics maker Sony advanced 1.69% and Nikon rose 2.64%.

Oil explorer Inpex Holdings advanced 0.52%, Nippon Oil rose 3.20% and Showa Shell gained 2.38%.

Fujifilm cut its outlook for full-year operating profit by more than a quarter percent on higher raw material prices and heavier restructuring costs. The company’s stock was untraded due to a glut of sell orders.

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

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