Japanese Market Modestly Higher

(RTTNews) - The Japanese stock market recovered after a weak start and is modestly higher on Tuesday following the positive cues overnight from Wall Street.

Nevertheless, investors are cautious on renewed trade concerns after U.S. President Donald Trump threatened to impose new tariffs on China if his counterpart Xi Jinping does not attend the upcoming G-20 meeting in Japan later this month. Trump also warned Mexico that tariffs will be reinstated if the country's legislative body does not approve an unrevealed, but "very important" part of the U.S.-Mexico deal.

The benchmark Nikkei 225 Index is adding 32.71 points or 0.15 percent to 21,167.13, after touching a low of 21,066.62 in early trades. Japanese shares ended near two-weeks high on Monday.

The major exporters are mostly higher despite a slightly stronger yen. Mitsubishi Electric is up 0.2 percent, Panasonic is adding 0.3 percent and Canon is higher by almost 1 percent, while Sony is unchanged.

In the auto space, Toyota Motor is adding 0.5 percent, while Honda Motor is lower by 0.2 percent.

Among tech stocks, Tokyo Electron is rising almost 2 percent and Advantest is higher by almost 1 percent.

Among the major banks, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are advancing more than 1 percent each. In the oil sector, Inpex is rising more than 1 percent and Japan Petroleum is edging down less than 0.1 percent.

Among the major gainers, Chiyoda Corp. is rising more than 5 percent, Nomura Holdings is higher by more than 3 percent and Cyberagent is advancing almost 3 percent.

On the flip side, NEC Corp., Astellas Pharma and Tokyo Dome are losing more than 1 percent each.

In economic news, the Bank of Japan said that the M2 money stock in Japan was up 2.7 percent on year in May, coming in at 1,029.8 trillion yen. That follows the downwardly revised 2.5 percent increase in April.

The M3 money stock advanced an annual 2.3 percent to 1,361.7 trillion yen following the 2.2 percent gain in the previous month.

In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Tuesday.

On Wall Street, stocks closed higher on Monday in reaction to news that the U.S. and Mexico have reached an agreement to avert President Donald Trump's threatened tariffs on all Mexican imports. However, some analysts have questioned the impact of the steps being taken by Mexico, arguing Trump threatened to derail a key economic partnership for a deal that ultimately maintains the status quo.

Trump warned on Twitter this morning that the tariffs will be reinstated if Mexico's legislative body does not approve an unrevealed but "very important" part of the deal.

The tech-heavy Nasdaq outperformed its counterparts, surging up 81.07 points or 1.1 percent to 7,823.17, while the Dow rose 78.74 points or 0.3 percent to 26,062.68 and the S&P 500 climbed 13.39 points or 0.5 percent to 2,886.73.

The major European markets also moved to the upside on Monday, although the German markets were closed for a holiday. While the U.K.'s FTSE 100 Index advanced by 0.6 percent, the French CAC 40 Index rose by 0.3 percent.

Crude oil futures ended lower on Monday as concerns over near-term energy demand outweighed prospects of a likely extension of production cuts by OPEC and allies, and slightly easing trade concerns. WTI crude for July declined $0.73 or 1.4 percent to close at $53.26 a barrel on the New York Mercantile Exchange.
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