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Japanese Market Pares Losses

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The Japanese stock market opened lower on Monday following the negative cues from Wall Street Friday amid toned down expectations of an aggressive interest rate cut by the Federal Reserve later this month and on worries about rising tensions in the Middle East. However, the market has pared early losses and is now modestly lower.

The benchmark Nikkei 225 Index is down 53.70 points or 0.25 percent to 21,413.29, after touching a low of 21,317.85 earlier. Japanese stocks closed notably higher on Friday.

The major exporters are mixed despite a weaker yen. Canon is lower by almost 1 percent and Sony is down 0.4 percent, while Mitsubishi Electric is adding 0.3 percent and Panasonic is rising 0.2 percent.

In the tech space, Advantest is rising more than 2 percent and Tokyo Electron is higher by more than 1 percent.

In the auto space, Toyota Motor is advancing almost 1 percent, while Honda Motor is lower by 0.2 percent. In the oil sector, Inpex is up 0.5 percent while Japan Petroleum is edging down 0.1 percent.

Market heavyweight SoftBank is gaining more than 2 percent, while Fast Retailing is lower by 0.3 percent.

Among the major gainers, Chiyoda is rising more than 4 percent, IHI Corp. is gaining almost 4 percent and Taiyo Yuden is higher by more than 3 percent.

 

On the flip side, Asahi Group is losing more than 6 percent and Toho Co. is lower by almost 5 percent. Shiseido Co., Daiichi Sankyo and Olympus are down more than 2 percent.

In economic news, Japan will provide June numbers for convenience store sales today.
In the currency market, the U.S. dollar is trading in the upper 107 yen range on Monday.

On Wall Street, stocks failed to sustain an early upward move and closed lower on Friday. The initial strength reflected a positive reaction to upbeat earnings news from software giant Microsoft Corp. Buying interest waned shortly after the start of trading, however, as traders looked ahead to the slew of earnings news due to be released next week and digesting the New York Federal Reserve's efforts to walk back comments President John Williams made Thursday that seemed to endorse a near-term interest rate cut.

The Dow fell 68.77 points or 0.3 percent to 27,154.20, the Nasdaq slid 60.75 points or 0.7 percent to 8,146.49 and the S&P 500 dropped 18.50 points or 0.6 percent to 2,976.61.

The major European markets showed more modest moves to the upside on the day. While the French CAC 40 Index closed just above the unchanged line, the U.K.'s FTSE 100 Index edged up by 0.2 percent and the German DAX Index rose by 0.3 percent.

Crude oil prices rose on Friday after the U.S. Navy shot down an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows. WTI crude futures for August ended up $0.33 or about 0.6 percent at $55.63 a barrel.

 

 


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