Japanese Market Significantly Lower

The Japanese stock market is significantly lower on Wednesday after a holiday, giving up some of the slight gains in the previous session, with the benchmark Nikkei index above the 29,400 level, despite the mostly positive cues overnight from Wall Street, with weakness in technology and high growth stocks amid rising global bond yields.

The benchmark Nikkei 225 Index is down 323.24 points or 1.09 percent at 29,450.87, after hitting a low of 29,446.51 earlier. Japanese stocks closed slightly higher on Monday and after a holiday on Tuesday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is adding more than 2 percent.

In the tech space, Screen Holdings is losing 2.5 percent, Tokyo Electron is edging down 0.4 percent and Advantest is declining more than 3 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining almost 3 percent, Mizuho Financial is edging up 0.3 percent and Mitsubishi UFJ Financial is adding more than 1 percent.

Among the major exporters, Panasonic is edging down 0.2 percent and Sony is losing more than 1 percent, while Mitsubishi Electric is edging up 0.2 percent and Canon is gaining almost 2 percent.

Among the other major losers, Z Holdings is plunging more than 5 percent, while Nexon and M3 are down more than 4 percent each. Rakuten Group, Recruit Holdings, CyberAgent and Shiseido are sliding almost 3 percent each.

Conversely, Japan Steel Works and Mitsubishi Motors are adding more than 5 percent each, while Nissan Motor, Ricoh and Inpex are gaining more than 4 percent each. Yaskawa Electric, Pacific Metals, Mazda Motor and Marubeni are up almost 4 percent each, while Kirin Holdings, Citizen Watch, Toho Zinc and Sumitomo Metal Mining are advancing more than 3 percent each.

In economic news, the manufacturing sector in Japan picked up steam in November, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 54.2. That's up from 53.2 in October and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI improved to 52.1 in November from 50.7 in October, and the composite PMI rose to 52.5 from 50.7.

In the currency market, the U.S. dollar is trading in the lower 115 yen-range on Wednesday.

On Wall Street, stocks once again moved in opposite directions during trading on Tuesday, closing mixed for the fourth consecutive session. While the Nasdaq extended the sharp pullback seen in the previous session, the Dow and the S&P 500 moved to the upside.

The Nasdaq climbed well off its worst levels of the day but still closed down 79.62 points or 0.5 percent at 15,775.14. Meanwhile, the Dow climbed 194.55 points or 0.6 percent to 35,813.80 and the S&P 500 rose 7.76 points or 0.2 percent at 4,690.70.

Meanwhile, European stocks moved mostly lower over the course of the session. The German DAX Index slumped by 1.1 percent and the French CAC 40 Index slid by 0.9 percent, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.2 percent.

Crude oil futures settled sharply higher on Tuesday, rebounding strongly from earlier losses over the outlook for energy demand due to rising coronavirus cases in Europe, and plans by the U.S. to release oil from the Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for January still ended higher by $1.75 or 2.3 percent at $78.50 a barrel.

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