RTTNews - After a weak start and subsequent choppy movements, the Japanese stock market climbed into positive territory on Tuesday with investors turning a bit optimistic about the economy.
The benchmark Nikkei 225 index, which had drifted down to 10,438 in early trading, is currently up by 35.5 points, or 0.33%, at 10,528.
The landslide victory of the Democratic Party of Japan in the lower house election had triggered hectic buying on Monday morning before the sell-off in the Chinese markets pushed investors on to a defensive mood. The Nikkei had ended the previous session with a loss of 41.61 points, or 0.4%, at 10,492.53.
Automobile stocks Toyota and Honda are currently trading modestly higher. Bank stocks are mostly down in the red with modest losses, while shares of trading companies as well as securities houses are also seen exhibiting weakness.
Chemicals and pharmaceuticals are mostly trading higher today. Steel, non-ferrous metals, machinery and electric machinery stocks are trading mixed. Semiconductor-related issues, including Advantest Corp. and Tokyo Electron, edged higher this morning on expectations of increased demand for inspection devices.
Shares of apparel company, Silver Ox Inc., are trading sharply higher today. The company, saddled with debts of 5.7 billion yen, has announced that it will file for bankruptcy protection with the Osaka District Court. The company has fallen short of operating funds amid worsening earnings resulting from declining sales. The Tokyo Stock Exchange and the Osaka Securities Exchange said they will delist the company's stock on September 16.
In the currency market, the U.S. dollar traded in the upper 92 yen zone early Tuesday in Tokyo, down from its levels overnight in New York. In early trading, the dollar fetched 92.85-92.87 yen against Monday's close of 93.07-93.17 yen in New York and 92.76-92.79 yen in Tokyo. The yen is currently trading at 93.11 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Singapore, Korea and Taiwan are trading higher after opening on a weak note. The New Zealand market is down sharply and Shanghai is currently trading flat. Stock markets across the region had closed mostly lower on Monday.
On Wall Street, stocks were seen struggling on Monday following a massive sell-off in the Chinese market. Still, with a slew of economic reports due for release, selling pressure subsided to an extent as the session progressed.
The Dow ended lower by 47.92 points, or 0.5%, at 9,496.28, the Nasdaq closed down by 19.71 points, or 1%, at 2,009.06 and the S&P 500 drifted down by 8.31 points, or 0.8%, to 1,020.62.
Major European markets ended lower on Monday with the French CAC 40 index and the German DAX index slipping by 1.1% and 1% respectively. The U.K. market was closed for a bank holiday.
Crude oil plunged below US$70 on Monday as stocks around the world fell, renewing concerns for energy demand. With the drop, oil gave back a good portion of its monthly gains. Light sweet crude for October delivery dropped to US$69.96, down US$2.78 on the session. Prices fell as low as US$69.13 earlier in the session.
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