RTTNews - The stock market in Japan ended in a mixed note on Monday, with the benchmark Nikkei slipping into negative territory on profit taking, while the broader Topix Index extended its gains for the 12th consecutive session led by gains in automotive and banking stocks.
The benchmark Nikkei 225 Index ended the session at 10,352, down 4.36 points, or 0.04%, while the broader Topix index of all first section stocks advanced 7.30 points to close at 958.
Volatile trading was witnessed as traders preferred to lock in gains ahead of earnings. Bargain hunting at auto and bank stocks on expectations of recovery in the economy offset the losses. Weak cues from the Wall Street also dampened market sentiment as traders await key economic numbers later in the week. Weak economic data related to wages also dampened the trader sentiment.
In the U.S., stocks ended on a mixed note on Friday despite better-than-expected advance GDP numbers as traders expressed concern over the drop in personal spending reflecting the weakness in consumer demand which accounts for nearly two-thirds of the economy.
The tech heavy Nasdaq fell by 5.80 points or 0.3% to 1,978, while the Dow closed up by 17.15 points or 0.2% at 9,172 and the S&P 500 rose 0.73 points or 0.1% to 987.
On the economic front, the Ministry of Health, Labor and Welfare revealed that the average wage in the country plummeted 7.1% year-on-year in June to 430,620 yen. That was significantly worse than the 3.2% annual contraction that analysts had been expecting following the upwardly revised 2.5% annual fall in May.
Light sweet crude oil for September delivery ended the Asian trading session at $70.22, up $0.77 from its previous close in New York at $69.45 a barrel on Friday.
Auto stocks advanced following reports that the U.S. House approved an emergency measure to add $2 billion to the cash for clunkers automobile purchase program,. Toyota Motor gained 2.51%, Honda Motor added 0.66%, Nissan Motor surged up 5.37% and Mazda Motor Corp soared 6.5%.
Financials advanced after Mitsubishi UFJ Financial Corp. reported a 48% rise in net income for the second quarter. The stock gained 5.63%. Among others, Mizuho Financial surged up 6.05%, Resona Holdings advanced 2.29% and Sumitomo Mitsui Financial rose 3.21%.
Casio Computer lost 4.63% after the company reported a net loss for the first quarter attributing sharp decline in sale of digital cameras and waterproof mobile phones.
Trading company Itochu Corp, shed 4.52% after the company reported that net income for the first quarter declined two-thirds on lower revenue.
Shipping stocks ended mixed. While Mitsui OSK Lined gained 2.08%, Kawasaki Kisen slipped 0.84% and Nippon Yusen lost 1.23%.
For comments and feedback: contact firstname.lastname@example.org