The Japanese stock market is trading in negative territory on Tuesday morning, led by realty stocks after one of the major property companies Sumitomo Realty & Development reported lower than expected profit due to writedowns. Financial stocks were trading mixed, having pared their early gains on profit taking. The major indices in the US closed mixed as investors preferred to take profits amid some uncertainty about the impending earnings season.
The Dow closed down 25.57 points or 0.3% at 8,058, while the Nasdaq closed up 0.77 points or 0.1% at 1,653 and the S&P 500 closed up 2.17 points or 0.3% at 859.
In Asian trading, crude oil is currently down $0.17 at $49.88 a barrel in electronic trading. Light sweet crude for May delivery dropped $2.19 to $50.05 a barrel on Monday, after the International Energy Agency lowered its projection of global demand for this year. Demand worries also heated up amid concern over upcoming earnings reports.
The benchmark Nikkei 225 Index, having opened higher at 8,956 compared to its previous close of 8,924, is currently trading at 8,818 down 113.35 points, and the broader Topix index of all First Section Issues is losing 10.29 points to 839.
In the currency market, the U.S. dollar is quoted in a range of 100.07-100.10 yen, down 0.58 yen from Monday's close.
Property related stocks are trading lower after Sumitomo Realty & Development reported earnings lower-than-expected earnings, primarily due to increased writedowns. The stock is down 5.60%. Among the other property related stocks, Mitsubishi Estate is losing 3.43%, Mitsui Fudosan is losing 3.41% and Tokyu Land Corp is falling 3.99%.
Mixed trading is witnessed among exporters. While Canon is losing 3.13%, Sony is adding 0.20% and Sharp is moving up 0.76%. Trading houses are also trading mixed. Mitsubishi Corp. is edging up 0.12%, but Sumitomo Corp. is falling 1.35% and Itochu is down 1.22%.
Automakers are trading weak following news that the US Treasury Department is directing General Motors (GM) to prepare for a bankruptcy filing by a June 1st deadline. Honda Motor is falling 2.65%, Isuzu Motors is down 4.24% and Toyota Motor is losing 2.29%.
Financial stocks are also seeing mixed sentiment. Mitsubishi UFJ is gaining 0.56%, and Mizuho Financial is edging up 0.51%, but Resona Holdings is down 1.11%. Sumitomo Mitsui is trading unchanged from previous close.
Oil stocks are trading mixed. While Inpex and Showa Shell are losing 1.10% each, Nippon Oil is trading unchanged from previous close.
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