RTTNews - The stock market in Japan ended in negative territory for the second successive session on Tuesday, led by metals and oil stocks amid softer commodity prices in the international market. The strengthening of the local currency dragged exporters lower in a session characterized by extreme caution in the wake of the upcoming reporting season.
In the U.S., stocks ended mixed on Monday following a late day rally, facilitated by bargain hunting at lower levels. Earlier, traders shrugged off a a report from the Institute for Supply Management showing that activity in the service sector contracted for the ninth consecutive month in June, although at a slower pace than economists had been expecting. The ISM said its index of activity in the service sector rose to 47.0 in June from 44.0 in May, but a reading below 50 indicates a contraction. Economists had been expecting the index to come in at 46.0.
The Nasdaq finished down by 9.12 points or 0.5% at 1,787, while the Dow closed up by 44.13 points or 0.5% at 8,325 and the S&P 500 rose by 2.30 points, or 0.3% to 899.
The Nikkei 225 Average opened modestly higher at 9,714 compared to its previous close of 9,681 taking cues from Wall Street where a late-day rally helped the Dow and S&P500 to end in positive territory. However, weaker oil and metal prices dragged the index below the unchanged line. An attempt to stage a recovery in the afternoon failed and the index ended the day in the red with a loss of 33.08 points, or 0.34% at 9,648. The broader Topix Index of all first section issues fell 3.29 points, or 0.4%, to 909.
Light sweet crude oil price for August delivery ended at $64.25, representing a gain of $0.20 a barrel in Asian trading, after having shed about $2.63 a barrel in New York to $64.05 a barrel on concerns about weak demand.
Among metal stocks, Pacific Metals Co., declined 3.09%, Nippon Light Metal Co lost 1.98%, and Sumitomo Metal Mining fell 4.32%.
Oil companies ended mixed. Inpex edged down 0.14%, and Nippon Oil Corp fell 2.14%. However, Showa Shell remained unchanged from its previous close.
Among the banks, Mitsubishi UFJ lost 1.01%, Mizuho Financial fell 4.85%, Resona Holdings slipped 0.58% and Sumitomo Mitsui lost 2.81%.
Shipping stocks ended weaker following drop in shipping rates. Kawasaki Kisen declined 1.89%, Nippon Yuesen fell 1.52% and Mitsui O.S.K Lines lost 2.65%.
For comments and feedback: contact email@example.com