Japanese Market Declines

(RTTNews) - The Japanese stock market is declining on Tuesday and the safe-haven yen strengthened following the weak cues overnight from Wall Street on disappointing U.S. economic data and as President Donald Trump announced plans to reinstate tariffs on metal imports from Brazil and Argentina.

The benchmark Nikkei 225 Index is losing 168.51 points or 0.72 percent to 23,360.99, after touching a low of 23,186.84 earlier. Japanese shares rallied to reach their highest level in nearly 14 months on Monday.

Market heavyweight SoftBank Group is lower by more than 2 percent and Fast Retailing is down 0.3 percent.

The major exporters are mostly lower on a stronger yen. Mitsubishi Electric is lower by more than 1 percent, while Panasonic is declining 0.5 percent and Canon is down 0.2 percent. Sony is adding 0.5 percent.

In the tech space, Tokyo Electron is declining 0.5 percent and Advantest is losing almost 1 percent. Among auto stocks, Honda Motor is lower by 0.6 percent and Toyota Motor is losing 0.7 percent.

In the oil sector, Inpex is advancing almost 1 percent, while Japan Petroleum is down 0.1 percent.

Among the major gainers, Nomura Holdings is advancing almost 2 percent.

On the flip side, Sompo Holdings is losing more than 3 percent and Taiyo Yuden is lower by almost 3 percent. Okuma Corp., Eisai Co., Nisshin Seifun and Kikkoman Corp. are all lower by more than 2 perent each.

On the economic front, Japan will provide November numbers for monetary base today.

In the currency market, the U.S. dollar is trading in the lower 109 yen-range on Tuesday.

On Wall Street, stocks closed lower on Monday as disappointing U.S. economic news offset earlier positive sentiment generated by some upbeat Chinese manufacturing data. A report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of November, while a separate report released by the Commerce Department showed an unexpected decrease in U.S. construction spending in the month of October. Traders were also reacting to President Donald Trump announcing plans to reinstate tariffs on metal imports from Brazil and Argentina.

The Dow ended the day just off its lows of the session, down 268.37 points or 1 percent at 27,783.04, while the Nasdaq tumbled 97.48 points or 1.1 percent to 8,567.99 and the S&P 500 slumped 27.11 points or 0.9 percent to 3,113.87.

The major European markets moved sharply lower on Monday. While the U.K.'s FTSE 100 Index slid by 0.8 percent, the French CAC 40 Index and the German DAX Index tumbled by 2 percent and 2.1 percent, respectively.

Crude oil prices regained some ground on Monday amid reports Saudi Arabia wants OPEC to deepen oil production cuts in order to anchor oil prices before Saudi Aramco's initial public offering. WTI crude oil for February delivery climbed $0.79 or 1.4 percent to $55.96 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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