Japanese Market Notably Lower

Reversing the gains in the previous two sessions, the Japanese stock market is notably lower on Thursday after opening in the green, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 39,300 level, with weakness in index heavyweights and technology stocks partially offset by gains in exporters and financial stocks.

The benchmark Nikkei 225 Index is down 223.92 points or 0.57 percent to 39,256.75, after touching a high of 39,884.01 and a low of 39,020.22 earlier. Japanese shares ended sharply higher on Wednesday.

Market heavyweight SoftBank Group is losing almost 3 percent and Uniqlo operator Fast Retailing is also down almost 3 percent. Among automakers, Toyota is gaining more than 4 percent and Honda is flat.

In the tech space, Tokyo Electron is losing almost 3 percent, Advantest is edging down 0.4 percent and Screen Holdings is declining more than 4 percent.

In the banking sector, Mizuho Financial is edging up 0.2 percent, Sumitomo Mitsui Financial is gaining almost 2 percent and Mitsubishi UFJ Financial is adding 2.5 percent.

Among the major exporters, Canon is adding more than 1 percent, Sony is edging up 0.2 percent, Mitsubishi Electric is advancing almost 3 percent and Panasonic is gaining 3.5 percent.

Among other major losers, Minebea Mitsumi is plunging more than 6 percent, while Nitori Holdings and M3 are sliding almost 6 percent each. BANDAI NAMCO is losing more than 4 percent, while Lasertec, Chugai Pharmaceutical, Disco and GS Yuasa are declining more than 3 percent each. Aozora Bank, Sumitomo Electric Industries, Toto, Yamaha, Seiko Epson and Keyence are down almost 3 percent.

Conversely, Keio is skyrocketing almost 18 percent and Tokai Carbon are surging more than 7 percent, while Tobu Railway, Dai-ichi Life and Daikin Industries are gaining more than 6 percent each. DeNA, Yamaha Motor, Konica Minolta, Taiheiyo Cement and Denso are adding more than 5 percent each, while Tokyo Gas, Kawasaki Heavy Industries, Resona Holdings, T&D Holdings and NTT Data are advancing more than 4 percent each.

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

On Wall Street, stocks skyrocketed during trading on Wednesday, as traders celebrated Donald Trump’s victory in the presidential election. The major averages added to the strong gains posted during Tuesday’s session, reaching new record closing highs.

The major averages saw further upside in late-day trading, reaching new highs for the session. The Dow soared 1,508.05 points or 3.6 percent to 43,729.93, the Nasdaq surged 544.29 points or 3.0 percent to 18,983.47 and the S&P 500 shot up 146.28 points or 2.5 percent to 5,929.04.

Meanwhile, the major European markets came under pressure over the course of the session. While the German DAX Index slumped by 1.1 percent, the French CAC 40 Index fell by 0.5 percent and the U.K.’s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices drifted lower on Wednesday after data showed crude inventories in the U.S. rose more than expected last week, while a stronger dollar also weighed. West Texas Intermediate Crude oil futures for December closed down $0.30 or 0.42 percent at $71.69 a barrel.

Market Analysis