The Japanese stock market is significantly lower on Monday after a long weekend, giving up some of the gains in the previous session, with the Nikkei 225 staying above the 26,600 level, following the broadly negative cues from Wall Street on Friday, with losses in exporters, financial and technology stocks amid a weaker yen.
The benchmark Nikkei 225 Index is down 221.94 points or 0.83 percent at 26,625.96, after hitting a low of 26,610.86 earlier. Japanese shares ended sharply higher on Thursday and were closed for a holiday on Friday.
Market heavyweight SoftBank Group is gaining almost 1 percent, while Uniqlo operator Fast Retailing is flat. Among automakers, Honda is gaining almost 1 percent, while Toyota is edging down 0.5 percent.
In the tech space, Advantest is declining more than 5 percent, while Tokyo Electron and Screen Holdings are losing more than 2 percent each. In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are losing more than 1 percent each, while Mitsubishi UFJ Financial is edging down 0.4 percent.
The major exporters are weak, with Sony and Mitsubishi Electric slipping almost 1 percent each, while Panasonic is losing more than 1 percent. Canon is edging up 0.3 percent.
Among the other major losers, Z Holdings is plunging 9.5 percent, Resona Holdings is losing more than 5 percent and Tokyo Gas is down more than 4 percent, while Toyota Tsusho and Osaka Gas are declining more than 3 percent each. Fanuc and Denso are slipping almost 3 percent each.
Conversely, Alps Alpine is soaring more than 14 percent and Kawasaki Kisen Kaisha is gaining more than 6 percent, while Fujitsu and Mitsui O.S.K. Lines are adding almost 6 percent each. NEC and Murata Manufacturing are up more than 5 percent, while Hitachi is rising almost 5 percent. Seiko Epson is advancing more than 4 percent, while Mitsubishi Logistics and Keisei Electric Railway are adding almost 4 percent each. Nippon Yusen K.K. is up more than 3 percent.
In economic news, the manufacturing sector in Japan continued to expand in April, albeit at a slower rate, the latest survey from Jibun Bank showed on Monday with a manufacturing PMI score of 53.5. That’s down from 54.1 in March although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
In the currency market, the U.S. dollar is trading in the lower 130 yen-range on Monday.
On Wall Street, stocks showed a substantial move back to the downside during trading on Friday following the rally seen in the previous session. The major averages more than offset yesterday’s gains, with the Nasdaq plunging to its lowest closing level since late November 2020.
The major averages saw continued weakness going into the close, ending the session near their worst levels of the day. The Dow dove 939.18 points or 2.8 percent to 32,977.21, the Nasdaq plummeted 536.89 points or 4.2 percent to 12,334.64 and the S&P 500 tumbled 155.57 points or 3.6 percent to 4,131.93.
Meanwhile, the major European markets moved to the upside on the day. While the German DAX Index advanced by 0.8 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index rose by 0.5 percent and 0.4 percent, respectively.
Crude oil futures pared early gains and drifted lower Friday, snapping a three-day winning streak as worries about outlook for energy demand weighed on prices. West Texas Intermediate Crude oil futures for June ended lower by $0.67 or 0.6 percent at $104.69 a barrel. WTI crude futures gained 3.3 percent last week.
Market Analysis
Japanese Market Significantly Lower
2022-05-02 02:41:32
