RTTNews - After a weak start, the Japanese market rebounded into positive territory on Monday before faltering again as selling resumed in several front line stocks. A strong yen and political uncertainty following the ruling coalition suffering a defeat in a key local election are seen as weighing to a notable extent.

With data on industrial production for May and consumer confidence in June due today, investors are seen in an extremely cautious mood in morning trading.

The benchmark index Nikkei, which opened 0.49% down at 9242.13, but rallied to 9343 in subsequent trades, is currently down by 80.09 points or 0.86% at 9,207.19.

Automobile and banking sectors are seeing stock-specific action. Toyota Motor Corp. shares rose moderately on reports that the automaker has received about 1,500 pre-orders for its Lexus HS hybrid slated to hit the market on Tuesday.

Construction, chemicals, electric machinery and foods stocks are trading mixed.

Pharmaceuticals stocks are trading firm. Shares of Daiichi Sankyo bounced back after three days of losses. The stock rose sharply on frenzied buying this morning and is currently trading over 3% up. The stock is in demand following the company receiving approval from the U.S. Food and Drug Administration for Effient, an anti-clotting medicine known generally as Prasugrel.

Textiles are mostly down in negative territory. Steel, ceramics, non-ferrous metals and machinery stocks are also mostly down in the red.

In the currency market, the U.S. dollar traded at the mid-92 yen level early Monday in Tokyo, a tad down from its late Friday quotes in New York. The dollar fetched 92.45-92.50 yen in early trading, against Friday's close of 92.50-92.60 yen. The yen is currently trading at 92.75 to the U.S. dollar.

Among other markets in the Asia-Pacific region, Australia, Shanghai, Singapore, Taiwan and Korea are trading weak. The New Zealand market is trading modestly higher. Stock markets across the region had ended Friday's session mostly lower.

On Friday, Wall Street ended lower after a lackluster show. The major averages saw some upside in late session dealing, with only the Nasdaq being able to climb into positive territory. The tech-heavy Nasdaq was able to finish higher by 3.48 points or 0.2% at 1,756.03, while the Dow fell by 36.65 points or 0.5% to 8,146.52 and the S&P 500 dipped by 3.55 points or 0.4% to 879.13.

Major European markets also finished on the downside, with the German DAX Index and the French CAC 40 Index closing down by 1.2% and 1.4% respectively. The U.K.'s FTSE 100 Index also fell, posting a loss of 0.8% for the session.

Crude oil dropped below US$60 per barrel after the latest International Energy Agency report backed lingering demand concerns. Crude capped its worst week since early January, falling more than 10%. On Friday, light sweet crude for August delivery touched as low as US$58.72 in early trading before finishing at US$59.89 a barrel, down 52 cents from Thursday's close.

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