RTTNews - The Japanese stock market opened on a weak note Tuesday following a negative close on Wall Street overnight, but swiftly rebounded into positive territory with traders going in for some bargain hunting and short-covering at lower levels.
The benchmark Nikkei 225 index , which fell to 10,208.1 in early trading, is currently in positive territory at 10,298.6, up 30 points or 0.3% over its previous close. The index had ended with a big loss of 328.72 points or 3.10% at 10,268.61 on Monday.
Construction, chemicals and foods stocks are currently trading mixed. Among pharmaceuticals stocks, Eisai, Shionogi, Chugai Pharmaceuticals and Kyowa Hakko Kirin are trading firm with notable gains.
Oil and coal industry stocks Nippon Oil, Nippon Mining Holdings and Showa Shell Sekkiyu K.K. are down in the red. Steel, non-ferrous metals and machinery stocks are mostly trading in the red.
Automobile stocks are also exhibiting weakness. However, in the banking space, Shizuoka Bank, Chiba Bank, Bank of Yokohama and Chuo Mitsui Trust Holdings are trading firm.
Shares of IHI Corp. moved higher this morning on reports that the firm and Sumitomo Mitsui Construction Co. together have won an order worth approximately 40 billion yen from the Vietnamese government to build one of the world's longest cable bridges. The stock is currently trading up by 1.5%. The Sumitomo Mitsui Construction stock is faring significantly better, gaining over 10% on its previous close.
Chubu Electric Power is trading modestly higher despite the firm's announcement on Monday that it will idle a nuclear power plant for up to one month due to the recent earthquake.
In the currency market, the U.S. dollar fetched 94.40-45 yen in early trading this morning against Monday's close of 94.45-55 yen in New York and 94.65-68 yen in Tokyo. The yen is currently trading at 94.75 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia and Taiwan are trading notably lower. Singapore and Korea are trading in positive territory with modest gains. Stock markets across the region had finished considerably lower on Monday.
U.S. stocks saw a sharp pullback on Monday, as last week's disappointing data on the health of the consumer sparked a broad-based sell-off in equities. A report from the Federal Reserve Bank of New York that showed conditions for New York manufacturers improved for the first time in well over a year in the month of August, and a release from the National Association of Home Builders that showed a rise in homebuilder confidence helped arrest the slide to an extent.
The Dow closed down by 186.06 points or 2% at 9,135.34, the Nasdaq drifted down by 54.68 points or 2.8% to 1,930.84 and the S&P 500 slipped by 24.36 points or 2.4% to 979.73.
Major European markets also closed notably lower, with the French CAC 40 index and the German DAX index falling by 2% and 2.1% respectively, while the U.K.'s FTSE 100 index slipped by 1.5%.
Crude oil finished lower again on Monday, as lower global equities raised concerns about energy demand. Oil was also hurt by a stronger U.S. dollar, although it ended the session off its lows of the day. Light sweet crude plunged to US$66.75 per barrel, down 76 cents on the session, extending the sharp drop seen on Friday. Prices fell as low as US$65.23 a barrel earlier in the session.
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