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Japanese Market Significantly Lower

The Japanese stock market is significantly lower on opening after a holiday on Tuesday, extending the losses in the previous two sessions, with the benchmark Nikkei index staying below the 28,200 level, following the mixed cues from Wall Street overnight, as Japan plans to maintain its strict border restrictions until late February in a bid to stave off the rapid spread of the omicron coronavirus variant.

The benchmark Nikkei 225 Index is losing 311.89 points or 1.10 percent to 28,166.67, after hitting a low of 28,089.49 earlier. Japanese shares closed slightly lower on Friday.

Market heavyweight SoftBank Group is losing 2.5 percent and Uniqlo operator Fast Retailing is down almost 2 percent. Among automakers, Honda is gaining almost 1 percent, while Toyota is edging down 0.3 percent.

In the tech space, Advantest is losing almost 2 percent, Screen Holdings is down more than 1 percent and Tokyo Electron is declining more than 2 percent. In the banking sector, Mitsubishi UFJ Financial is edging up 0.3 percent, Sumitomo Mitsui Financial is up more than 1 percent and Mizuho Financial is gaining almost 1 percent.

The major exporters are mostly lower. Panasonic is losing more than 2 percent, Mitsubishi Electric is edging down 0.5 percent and Sony is declining almost 1 percent, while Canon is edging up 0.3 percent.

Among the other major losers, Keyence is plunging more than 7 percent and Shiseido is losing 5.5 percent, while Taiyo Yuden and Kikkoman are down almost 4 percent each. Nippon Express is declining more than 3 percent, while Yamato Holdings, Z Holdings, Dentsu Group, Rakuten Group and Yamaha Motor are all slipping almost 3 percent each.

Conversely, Mitsubishi Heavy Industries is gaining more than 4 percent.

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

On Wall Street, stocks showed a notable rebound over the course of the trading session on Monday following an early sell-off. The major averages climbed well off their worst levels of the day, with the Nasdaq reaching positive territory.

The Nasdaq tumbled by as much as 2.7 percent in early trading but ended the day up 6.93 points or 0.1 percent at 14,942.83. Meanwhile, the S&P 500 edged down 6.74 points or 0.1 percent at 4,670.29 and the Dow fell 162.79 points or 0.5 percent at 36,068.87.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.5 percent, the German DAX Index tumbled by 1.1 and the French CAC 40 Index plunged by 1.4 percent.

Crude oil prices drifted lower Monday on concerns about the outlook for energy demand due to the rapid surge in the Omicron variant of the coronavirus across the globe. A firm dollar amid rising prospects for a series of interest rate hikes weighed as well on crude oil prices. West Texas Intermediate Crude futures for February slipped $0.67 or 0.9 percent at $78.23 a barrel.

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