Japanese Market Declines
(RTTNews) - The Japanese stock market is declining on Monday despite the positive cues from Wall Street Friday as investors remained cautious amid the busy corporate earnings season.
Investors are also looking ahead to the U.S.-China trade talks set to resume this week and the U.S. Federal Reserve's monetary policy announcement due on Wednesday.
The benchmark Nikkei 225 Index is losing 103.75 points or 0.48 percent to 21,554.40, after touching a low of 21,518.70 earlier. Japanese stocks closed lower on Friday.
The major exporters are lower on a stronger yen. Mitsubishi Electric is declining more than 1 percent and Canon is down 0.5 percent, while Panasonic and Sony are lower by 0.4 percent each.
In the tech space, Tokyo Electron is lower by almost 2 percent and Fanuc is losing more than 1 percent, while Advantest is up 0.2 percent.
Market heavyweight SoftBank is rising more than 1 percent, while Fast Retailing is lower by 0.4 percent. In the auto sector, Honda Motor is down 0.6 percent and Toyota Motor is declining 0.4 percent.
Among oil stocks, Inpex and Japan Petroluem are lower by more than 1 percent each even as crude oil prices rose modestly overnight.
Among the other major gainers, Kawasaki Kisen Kaisha is gaining almost 5 percent, Oki Electric Industry is higher by 3 percent and Kansai Electric Power is rising almost 3 percent.
On the flip side, Shizuoka Bank is losing almost 5 percent, while Kyocera Corp., Tokuyama Corp. and NSK are lower by more than 3 percent each.
On the economic front, the Ministry of Economy, Trade and Industry said that the value of retail sales in Japan was roughly unchanged in June on a seasonally adjusted basis. That exceeded expectations for a decline of 0.3 percent following the upwardly revised 0.4 percent gain in May.
In the currency market, the U.S. dollar is trading in the mid-108 yen range on Monday.
On Wall Street, stocks closed higher on Friday, with a rally by the tech-heavy Nasdaq partly due to gains by shares of Google parent Alphabet and social media giant Twitter on upbeat second-quarter earnings results. Traders were also reacting to a report from the Commerce Department showing U.S. economic growth slowed in the second quarter, but still exceeded economist estimates.
The Nasdaq surged up 91.67 points or 1.1 percent to 8,330.21, while the S&P 500 climbed 22.19 points or 0.7 percent to 3,025.86 and the Dow rose 51.47 points or 0.2 percent to 27,192.45.
The major European markets also moved to the upside on Fridday. While the U.K.'s FTSE 100 Index advanced by 0.8 percent, the French CAC 40 Index and the German DAX Index rose by 0.6 percent and 0.5 percent, respectively.
Crude oil futures edged higher on Friday after swinging between gains and losses as traders weighed demand and supply prospects for the commodity. WTI crude for September ended up $0.18 or about 0.3 percent, at $56.20 a barrel.