Japanese Market Slightly Lower

The Japanese stock market is slightly lower in choppy trading on Thursday, extending the slight gains in the previous two sessions, with the Nikkei 225 staying above the 28,000 mark, following the broadly negative cues from global markets overnight, as weakness in technology stocks were partially offset by gains in exporters and financial stocks. Traders also reacted to data showing Japan’s trade deficit widened.

The benchmark Nikkei 225 Index is down 33.89 points or 0.12 percent to 27,994.41, after hitting a low of 27,910.01 earlier. Japanese stocks closed slightly higher on Wednesday.

Market heavyweight SoftBank Group is edging down 0.2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Toyota is gaining almost 1 percent and Honda is edging up 0.4 percent.

In the tech space, Screen Holdings and Tokyo Electron are losing almost 3 percent each, while Advantest is declining almost 4 percent.

In the banking sector, Mitsubishi UFJ Financial is edging up 0.1 percent, Sumitomo Mitsui Financial is gaining more than 1 percent and Mizuho Financial is adding almost 1 percent.

Among the major exporters, Mitsubishi Electric and Canon are edging up 0.3 to 0.5 percent each, while Panasonic is gaining 1.5 percent. Sony is edging down 0.4 percent.

Among the other major losers, Pacific Metals is losing more than 3 percent.

Conversely, JGC Holdings and Isetan Mitsukoshi are surging more than 5 percent each, while Takashimaya is gaining almost 5 percent. Tokyu, Keisei Electric Railway, Tobu Railway and Marui Group are advancing almost 4 percent each, while West Japan Railway, Keio, NEXON and Alps Alpine are adding more than 3 percent each. Central Japan Railway, Toray Industries, East Japan Railway and Dowa Holdings are up almost 3 percent each.

In economic news, Japan posted a merchandise trade deficit of 2,162.3 billion yen in October, the Ministry of Finance said on Thursday. That missed expectations for a shortfall of 1,610.0 billion yen following the downwardly revised 2,094.3 billion yen deficit in September (originally a 2,09.0 billion yen deficit).

Exports were up 25.3 percent on year to 9.001 trillion yen, shy of forecasts for a 28.1 percent increase following the 28.9 percent gain in the previous month. Imports surged an annual 53.5 percent versus expectations for a jump of 49.7 percent following the downwardly revised 45.7 percent increase a month earlier (originally 45.9 percent).

In the currency market, the U.S. dollar is trading in the mid-139 yen-range on Thursday.

On Wall Street, stocks moved mostly lower over the course of the trading session on Wednesday, largely offsetting the upward move seen on Tuesday. The tech-heavy Nasdaq showed a particularly steep drop, while the Dow spent much of the session lingering near the unchanged line.

After ending Tuesday’s trading at a nearly two-month closing high, the Nasdaq tumbled 174.52 points or 1.5 percent to 11,183.66, the S&P 500 also slumped 32.94 points or 0.8 percent to 3,958.79 and the narrower Dow edged down 39.09 points or 0.1 percent to 33,553.83.

The major European markets also moved to the downside on the day. While the German DAX Index slumped 1.0 percent, the French CAC 40 Index slid 0.5 percent and the U.K.’s FTSE 100 Index dipped 0.3 percent.

Crude oil prices slipped Wednesday amid concerns about the outlook for demand and the resumption of Russian oil shipments to Hungary. Oil prices fell despite data showing a larger-than-expected drop in crude inventories in the U.S. West Texas Intermediate Crude oil futures for December ended lower by $1.33 or 1.5 percent at $85.59 a barrel.

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