RTTNews - After moving higher on positive cues from Wall Street, the Japanese market slipped into the red on Tuesday as a stronger yen and lower oil prices triggered some selling in subsequent trading.
The Japanese benchmark Nikkei 225 index, which fell to around 9,620 after initially rising to 9,735, is currently down with a loss of 22 points or 0.23% at 9,659. The Nikkei had ended at 9,681 with a loss of 135.20 points, or 1.38% on Monday on concerns about the global recovery.
Mining and energy related stocks are trading lower. Steel and non-ferrous stocks are trading mixed. Shipbuilding, bank and automotive stocks are also seen exhibiting a mixed trend.
Construction, foods, textiles, chemicals, pharmaceuticals and machinery stocks are mostly trading in positive territory.
Shares of Inpex Corp. and Japan Petroleum Exploration Co. fell sharply in early trading following a decline in crude futures in New York, and are still trading in the negative territory with notable losses.
Shares of retail major FamilyMart Co. are up sharply by 5.5%, with the company's earnings for the March-May period turning out to be largely in line with market predictions. The firm said Monday evening that its group operating profit rose 1% year on year to 8.4 billion yen for the quarter, buoyed by brisk same-store sales. However, net profit declined 16% to 3.9 billion yen, largely due to changes in its accounting method.
Shares of King Jim Co. are up sharply on reports that the firm will likely post a nearly 1 billion yen group operating profit for the year through June 2010, 40%-50% higher than the figure estimated for the previous year.
In the currency market, the U.S. dollar traded in the lower 95 yen range in early trading in Tokyo, down slightly from its late Monday quotes in New York. The yen is currently trading at 95.24 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia and Shanghai are trading lower. The New Zealand and Korean markets are up marginally, while the Singapore and Taiwan markets are trading in positive territory with notable gains. The stock markets in the Asia-Pacific region had ended Monday's session mostly lower.
On Wall Street, stocks rallied after trading in the red for most of the session on Monday. Traders shrugged off a report from the Institute for Supply Management which showed 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 Dow closed up by 44.13 points or 0.5% at 8,324.87 and the S&P 500 rose by 2.30 or 0.3% to 898.72. However, the tech-heavy Nasdaq finished down by 9.12 points or 0.5% at 1,787.40.
Major European markets also saw notable weakness on the day, with the German DAX Index and French CAC 40 Index both finishing down 1.2%. The U.K.'s FTSE 100 Index also fell, posting a loss of 1% for the day.
Crude oil fell sharply to its lowest levels in nearly two weeks in the New York Mercantile Exchange on concerns over the slow pace of global economic recovery following weak labor data from the U.S. Light sweet crude for August delivery lost US$2.68 to close at US$64.05 a barrel as trade resumed after a three-day holiday weekend in the United States.
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