Japan Stock Market May Erase Monday's Losses

(RTTNews) - The Japan stock market has moved lower in two of three trading days since the end of the four-day winning streak in which it had tallied more than 3,800 points or 7.2 percent. The Nikkei finished just above the 56,500-point plateau although it may bounce higher again on Tuesday. The global forecast for the Asian markets is cautiously optimistic, with energy and technology stocks expected to provide support. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead. The Nikkei finished modestly lower on Monday following losses from the automobile producers and mixed performances from the financial shares and technology stocks. For the day, the index sank 421.34 points or 0.74 percent to finish at 56,502.77 after trading between 56,232.78 and 56,765.72. Among the actives, Nissan Motor tumbled 2.53 percent, while Mazda Motor retreated 1.28 percent, Honda Motor declined 1.22 percent, Softbank Group fell 0.37 percent, Mitsubishi UFJ Financial collected 0.63 percent, Mizuho Financial sank 0.75 percent, Sumitomo Mitsui Financial improved 0.74 percent, Mitsubishi Electric perked 0.02 percent, Sony Group tanked 2.23 percent, Panasonic Holdings added 0.65 percent, Hitachi gained 0.79 percent and Toyota Motor was unchanged. The lead from Wall Street is positive as the major averages opened under water on Monday but quickly trended to the upside and into the green, finishing at daily highs. The Dow climbed 301.68 points or 063 percent to finish at 48,218.25, while the NASDAQ jumped 280.84 points or 1.23 percent to close at 23,183.74 and the S&P 500 rallied 69.35 points or 1.02 percent to end at 6,886.24. The strength that emerged on Wall Street came as traders kept an eye on developments in the Middle East after weekend talks between the U.S. and Iran failed to produce an agreement. Crude oil prices surged on Monday after U.S. President Donald Trump imposed a blockade on ships transiting to and from Iran via the Strait of Hormuz. West Texas Intermediate crude for May delivery was up $2.67 or 2.76 percent at $99.24 per barrel. While the news contributed to a significant increase by the price of crude oil, traders seem optimistic Trump will back down once again and avoid a return to war. Traders were also looking ahead to the start of earnings season, with companies largely expected to report strong financial results despite the Middle East conflict. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.