The Japanese stock market opened lower on Monday amid concerns over the U.S. economy and debt woes in Europe. A stronger yen also contributed to the decline. However, with investors going in for some bargain hunting after previous session's sharp losses, the market has come off its lows and is currently trading modestly down from the unchanged line.
The benchmark Nikkei 225 index, which tumbled to 9,952.6, its lowest level since early December, is currently trading at 10,021, down 36.1 points or 0.36% from its previous close. The benchmark had ended nearly 3% down on Friday.
Steel and non-ferrous metals stocks are among the notable gainers. Bank and automobile stocks are trading mixed. Manufacturing, pharmaceuticals and chemicals stocks are also exhibiting a mixed trend.
Suzuki Motor Corp. shares declined for the third successive session following an announcement from the company that its group operating profit growth slowed on the quarter in the October-December term.
Shares of Yamaha Motor Co. declined sharply after the motorcycle maker said it logged a 216.2 billion yen group net loss for the year ended December, worse than a previous forecast of a 182 billion yen loss.
IHI Corp. shares rebounded and moved higher following the company upgrading its operating profit for the year through March.
Furukawa Electric is trading notably higher on reports the firm's group operating profit will likely rise 55% on the year to more than 15 billion yen for the year through March.
On the economic front, Japan's current account surplus expanded more than five-fold from a year earlier in December, the Ministry of Finance said Monday, as stronger overseas demand continued to support the nation's export-led economic recovery. The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, stood at 900.8 billion yen in December before seasonal adjustment. In November, the surplus rose 76.9% to 1.103 trillion yen.
Exports rose 11.7% on year to 5.127 trillion yen, marking the first on-year rise in 15 months. Imports decreased 6.0% to 4.496 trillion yen.
In another news, the Bank of Japan said the average daily lending balance at domestic banks dropped 1.7% on the year to 401.57 trillion yen in January, recording a second straight month of decline. The central bank said the fall came in reaction to the previous year's shift to direct financing amid the financial crisis.
In the currency market, the U.S. dollar traded in the lower 89 yen level in early deals in Tokyo. The yen is currently trading at 89.38 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Shanghai, Singapore and Taiwan are trading firm, while Malaysia, New Zealand and South Korea are exhibiting weakness. Markets across the region had ended with notable losses on Friday.
On Wall Street, stocks posted modest gains on Friday after a significantly volatile session. The major averages closed in positive territory after spending most of the day in the red.
While concerns about the labor market dragged stock prices down around early afternoon, a lower than expected decline in consumer credit and speculation that the European Union would concoct a solution to Greece's debt problems pulled the market out of the red.
The Dow gained 10 points or 0.1% to end at 10,012.2, the Nasdaq advanced by 15.7 points or 0.7% to 2,141.1 and the S&P 500 edged up 3.1 points or 0.3% to 1,066.2.
Major European markets saw substantial losses on Friday. The U.K.'s FTSE 100 and the German DAX index ended lower by 1.5% and 1.8% respectively, while the French CAC 40 index declined by 3.4%.
Crude oil declined to its lowest level in nearly two months on Friday, with a stronger dollar and concerns about global economy causing the decline. Light sweet crude for March delivery settled at US$71.19 a barrel, down US$1.95 on the session.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.