RTTNews - After a weak start, the Japanese market has rebounded into positive territory on Wednesday with investors picking up frontline stocks at lower levels.
The benchmark index Nikkei, which fell to 10,036 in early trading, rallied to around 10,160 on heavy buying in some heavyweight stocks. However, with investors turning a bit cautious ahead of the release of some key earnings reports, the Nikkei has drifted down a bit and is currently trading at 10,118.1, up 30.9 points or 0.32% over its previous close.
On Tuesday, after opening sharply higher, the Nikkei drifted lower as traders chose to take profits after nine successive days of gains. The benchmark ended 1.4 points or 0.01% down at 10,087.
Shares of Canon Inc. rose sharply, gaining as much as 70 yen to hit 3,440 yen, following the firm raising its guidance for the company's group operating profit for the year through December. The upgrade was due to a 5% increase in the sales forecast for digital single-lens reflex cameras.
Among other stocks in the electric machinery space, Advantest, Taiyo Yuden, Hitachi and Mitsubishi Electric Corp. are trading with notable gains.
Steel and non-ferrous metals stocks are mostly trading in the red. Automobile stocks are exhibiting weakness. Machinery stocks are also seen struggling for support.
Bank stocks are trading mixed. While Sumitomo Mitsui Financial, Sumitomo Trust and Banking, Chiba Bank and Bank of Yokohama are trading higher, Resona Holdings, Mitsubishi UFJ and Shinsei Bank are down in the red.
Shares of Nomura Holdings, Daiwa Securities and Mizuho Securities Co. are trading lower.
Shares of construction machinery maker Komatsu Ltd. rebounded after a weak start this morning. On Tuesday evening, the company said group net profit slid 92% year-on-year to 4.7 billion yen in the April-June quarter. However, the figure was an improvement over the 34.5 billion yen loss of the preceding quarter. Earnings were buoyed by the firm trimming fixed costs by 10.5 billion yen through the consolidation of production lines. The firm kept its full-year earnings forecast unchanged.
According to the preliminary data released by the Ministry of Economy, Trade and Industry, Japan's domestic retail sales registered a tenth straight month of decline as it fell 3% year-on-year to 10.65 trillion yen in June.
In the currency market, the U.S. dollar traded in the mid-94 yen range early Wednesday in Tokyo, a tad lower than its late Tuesday levels in New York. In early trading this morning, the dollar fetched fetched 94.41-44 yen against Tuesday's close of 94.50-60 yen in New York and 95.16-19 yen in Tokyo. The yen is currently trading at 94.55 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Korea, Singapore and Taiwan are trading flat. Shanghai and New Zealand are down in the red with their indices Shanghai Composite Average and NZX 50 drifting lower by 0.8% and 0.6%, respectively. Stock markets across the region finished largely on the upside on Tuesday.
Wall Street ended Tuesday's session on a mixed note in reaction to the day's varied earnings and economic reports. The major averages closed on opposite sides of the unchanged mark, with the tech-heavy Nasdaq posting a modest gain.
On the economic front, according to a release from the Consumer Conference Board, the consumer confidence index fell to 46.6 in July, reflecting less favorable assessments of both current conditions and the near-term outlook. Earlier, Standard and Poor's released a separate report showing that although U.S. home prices continued to decline at a significant annual rate in the month of May, the pace of decline in prices slowed for the fourth consecutive month.
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