Japanese Market Significantly Lower

The Japanese stock market is trading significantly lower on Monday, reversing the gains in the previous session. The benchmark S&P/ASX 200 is falling well above the 38,400 level, following the broadly negative cues from Wall Street on Friday, with weakness across most sectors led by index heavyweights, financial and technology stocks.

The benchmark Nikkei 225 Index is down 266.56 or 0.69 percent at 38,376.35, after hitting a low of 38,150.39 earlier. Japanese shares ended modestly higher on Friday.

Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is edging up 0.4 percent, while Toyota is losing more than 1 percent.

In the tech space, Screen Holdings and Tokyo Electron are losing almost 2 percent each, while Advantest is gaining almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is losing almost 1 percent and Mizuho Financial is edging down 0.5 percent, while Mitsubishi UFJ Financial is flat.

The major exporters are mostly lower. Panasonic and Canon are edging down 0.3 to 0.4 percent each, while Mitsubishi Electric is losing 1.5 percent. Sony is gaining almost 1 percent.

Among other major losers, Chugai Pharmaceutical and Dentsu Group are slipping more than 7 percent each, while Aozora Bank and Ebara are losing more than 6 percent each. Eisai is down more than 4 percent, Otsuka Holdings is declining almost 4 percent. IHI are sliding more than 3 percent, while Mitsubishi Heavy Industries, Astellas Pharma, Daiichi Sankyo, Shionogi & Co., Renesas Electronics and Resona Holdings are falling almost 3 percent each.

Conversely, Ryohin Keikaku is surging almost 7 percent, M3 is gaining more than 5 percent, Taise is adding more than 4 percent and Mercari is up almost 3 percent.

In economic news, the total value of core machine orders in Japan was down a seasonally adjusted 0.7% on Month in September, the Cabinet Office said on Monday – coming in at 852.0 billion yen. That missed forecasts for an increase of 1.4 percent following the 1.9 percent contraction in August.

On a yearly basis, core machine orders fell 4.8 percent after slumping 3.4 percent in the previous month. For the third quarter of 2024, core machine orders fell 1.3 percent on quarter and 0.4 percent on year. For the fourth quarter of 2024, core machine orders are seen higher by 5.7 percent on quarter and 8.0 percent on year.

In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Monday.

On Wall Street, stocks showed a more substantial move to the downside during trading on Friday after coming under pressure late in Thursday’s session. The major averages all moved sharply lower on the day, pulling back well off Monday’s record closing highs.

The major averages climbed off their worst levels in late-day trading but remained firmly negative. The tech-heavy Nasdaq led the way lower, plunging 427.53 points or 2.2 percent to 18,680.12. The S&P 500 also tumbled 78.55 points or 1.3 percent to 5,870.62, while the narrower Dow slid 305.87 points or 0.7 percent to 43,444.99.

The major European markets all also moved to the downside on the day. While the French CAC 40 Index slid by 0.6 percent, the German DAX Index fell by 0.3 percent and the U.K.’s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices plummeted Friday on concerns about the outlook for demand, recent data showing an increase in U.S. crude inventories and a stronger dollar. West Texas Intermediate Crude oil futures for December sank $1.68 or 2.45 percent at $67.02 a barrel; they shed 5 percent in the week.

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