RTTNews - The Japanese market opened lower on Tuesday with investors cashing in on recent gains and booking some profits. Following a flat close on Wall Street overnight, the mood is a bit cautious as well with traders looking for a clear signal to emerge.
The Japanese benchmark index Nikkei, which dropped down to 10,489 earlier this morning but staged a recovery of sorts subsequently, is currently trading at 10,513, down 68 points or 0.64% from its previous close. The Nikkei had ended up 343 points or 3.35% at 10,581 on Monday.
Construction, foods and textiles stocks are mostly trading lower this morning. Paper, chemicals and pharmaceuticals stocks are trading mixed.
Steel stocks are exhibiting weakness. Among non-ferrous metals, Toho Zinc, DOWA Holdings and Mitsui Mining and Smelting are trading with notable gains.
Almost all prominent stocks in machinery and electric machinery space are trading in the red. Bank stocks are also seen exhibiting weakness.
Among automobile stocks, Hino Motors is gaining nearly 3%. However, Honda Motor, Suzuki Motor, Toyota Motor and Nissan Motor are all trading in the red with notable losses.
Lawson Inc. shares extended their gains after the convenience store operator officially announced it is forming an alliance with Matsumotokiyoshi Holdings Co. to launch hybrid convenience stores and drugstores. The stock is trading nearly a percent up over its previous close.
NGK Insulators edged higher on reports that the company has received an order worth slightly over 60 billion yen to supply sodium-sulfur batteries to Abu Dhabi. The stock is trading nearly 5% up at present.
In the currency market, the U.S. dollar traded in the lower 94-yen range earlier this morning, slightly down from its levels overnight in New York. In early trading, the dollar fetched 94.39-44 yen compared with Monday's close of 94.52-62 yen in New York and 94.95-98 yen in Tokyo. The yen is currently trading at 94.20 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Shanghai, Singapore and Korea are trading weak while New Zealand and Taiwan are trading in positive territory with modest gains. Stock markets across the region had closed notably higher on Monday.
On Wall Street, stocks drifted lower after some early strength as market sentiment was slightly hit by comments from noted economist Nouriel Roubini about a possible double recession. Moving in a choppy manner in late session, the Dow ended the day with a small gain of 3.32 points at 9,509. The Nasdaq drifted down by 2.92 points to 2,018 and the S&P 500 ended 0.56 points down at 1,026.
Major European markets saw strong gains on Monday with the German DAX index and the U.K.'s FTSE 100 index both rising by 0.8%, while the French CAC 40 index gained 1%.
Crude oil edged higher on Monday amid hopes a global economic recovery will boost energy demand. Oil hit a 10-month intra-day high before easing. Light sweet crude for October closed at US$74.37 per barrel, up 48 cents on the session.
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