Japanese Market Falters After Positive Start
(RTTNews.com) - After opening higher, thanks to some bargain hunting, the Japanese market faltered on Monday with investors choosing to trim down positions amid concerns about the impact of the partial government shutdown in the U.S.
Bank, oil, communications and precision instruments stocks opened on a firm note, but gave up most of their gains subsequently. Electric power, manufacturing, real estate and non-ferrous metals stocks are trading weak.
The benchmark Nikkei 225 index, which advanced to 14,073.2 in early trades, is currently down 115.5 points or 0.8 percent at 13,907.
Tokyo Electric Power is down 7 percent. Taiyo Yuden, Sharp Corp., Mitsui Chemicals, Taisei Corp., Mitsubishi Chemical Holdings, Obayashi Corp., Tokyo Tatemono and Toshiba Corp. are all trading lower by 2 to 4 percent.
Olympus Corp., Casio Computer, Japan Steel Works, Furukawa, Mazda Motor, Chubu Electric Power, Mitsui Mining & Smelting, Toho Zinc, Mitsubishi Motors and Isuzu Motors are also trading notably lower.
Among the gainers, Unitika and Yamaha Corp. are up 3.6 percent and 3.2 percent, respectively. Citizen Holdings is trading higher by over 2 percent.
Sumitomo Mitsui Financial Group Inc. shares are trading higher after the company raised its profit forecast for the April - September half.
Nippon Telegraph & Telephone Corp., Mitsubishi Electric Corp., Tokyo Gas, Tokyo Electron, Softbank Corp., Alps Electric, Ebara Corp., J Front Retailing, Aeon Co. and Nicheri Corp. are all trading higher by 1 to 1.5 percent.
In the currency market, the U.S. dollar traded in the lower 97 yen range in early deals in Tokyo. The yen is currently trading at 97.12 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, South Korea, Hong Kong and Taiwan are trading weak, while Malaysia, New Zealand and Singapore are up marginally.
On Wall Street, stocks ended modestly higher on Friday with a section of investors picking up stocks, amid optimism the government will soon find a solution to end the budget impasse.
The Dow ended up 76.1 points or 0.5 percent at 15,072.6, the Nasdaq closed 33.4 points or 0.9 percent up at 3,807.8 and the S&P 500 closed higher by 11.8 points or 0.7 percent at 1,690.5.
Major European markets too closed higher on Friday. While the U.K.'s FTSE 100 index edged up marginally, the French CAC 40 index and the German DAX index gained 0.9 percent and 0.3 percent respectively.
U.S. crude oil ended higher on Friday, mostly on supply disruption concerns after Tropical Storm Karen moved into the Gulf of Mexico. Crude for November delivery ended up $0.53 or 0.5 percent at $103.84 a barrel on the New York Mercantile Exchange.
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