The Japanese stock market is slightly higher on Wednesday, extending the losses of the previous session, with the benchmark Nikkei index above the 27,600 level, ignoring the broadly positive cues overnight from Wall Street, with traders remaining extremely concerned as the country continues to struggle to contain the rapid spread of the delta variant of the coronavirus, centered around Olympic city Tokyo.
The benchmark Nikkei 225 Index is losing 31.73 points or 0.10 percent to 27,610.10, after hitting a low of 27,488.74 earlier. Japanese stocks closed notably lower on Tuesday.
Market heavyweight SoftBank Group and Uniqlo operator Fast Retailing are losing almost 1 percent each. Among automakers, Honda is edging down 0.3 percent, while Toyota is edging up 0.3 percent.
In the tech space, Screen Holdings is gaining almost 1 percent, while Tokyo Electron is losing almost 1 percent and Advantest is edging down 0.1 percent.
In the banking sector, Sumitomo Mitsui Financial is flat and Mitsubishi UFJ Financial is edging up 0.2 percent, while Mizuho Financial is edging down 0.3 percent.
Among the major exporters, Panasonic and Mitsubishi Electric are edging down 0.2 percent each, while Canon is gaining almost 2 percent. Sony is losing more than 3 percent.
Among the other major losers, Nichirei is losing almost 12 percent, while Mitsui E&S Holdings is down almost 7 percent. Sumitomo Electric Industries is declining more than 5 percent, while Marubeni, Kyowa Kirin, Sumitomo Chemical and GS Yuasa are lower by more than 4 percent each. Kubota is down more than 3 percent, while Sojitz, Nippon Suisan Kaisha and Mitsui & Co. are losing almost 3 percent each.
Conversely, Takara Holdings and Z Holdings are gaining more than 9 percent each, while Daikin Industries and Casio Computer are adding almost 7 percent each. Nippon Steel and Kawasaki Kisen Kaisha are rising more than 5 percent each, while Nippon Yusen K.K., Seiko Epson, JFE Holdings, Mitsui O.S.K. Lines and Kao are higher by almost 4 percent each.
In economic news, the services sector in Japan continued to contract in July, and at a faster rate, the latest survey from Jibun Bank showed on Wednesday, with a services PMI score of 47.4. That’s down from 48.0 in June and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also said its composite index sank to 48.8 in July from 48.9 in June.
In the currency market, the U.S. dollar is trading in the 109 yen-range on Wednesday.
On Wall Street, stocks moved mostly higher over the course of the trading day on Tuesday after seeing significant volatility early in the session. With the upward move on the day, the S&P 500 ended the session at a new record closing high.
The major averages saw further upside going into the close, finishing the day at their best levels of the session. The Dow advanced 278.24 points or 0.8 percent to 35,116.40, the Nasdaq rose 80.23 points or 0.6 percent to 14,761.30 and the S&P 500 climbed 35.99 points or 0.8 percent to 4,423.15.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged down 0.1 percent, the U.K.’s FTSE 100 Index rose 0.3 percent and the French CAC 40 Index advanced 0.7 percent.
Crude oil prices saw further downside during trading on Tuesday, extending losses from the previous session on concerns over the outlook for demand. West Texas Intermediate crude sank $0.70 or 1 percent to $70.56 a barrel.
Market Analysis
Japanese Market Slightly Lower
2021-08-04 02:25:59
