The Japanese stock market continued its downward trend for the second consecutive session, losing nearly 400 points or 1%, with the Nikkei 225 closing just shy of the 39,460 mark. However, there are hopes for a recovery starting Tuesday. The global outlook for Asian markets is varied but leans towards an upward trend, particularly with anticipated gains from the technology sector. While European markets reported declines and U.S. markets presented mixed results, Asian markets are expected to mirror the latter trend.
On Monday, the Nikkei 225 edged slightly lower due to mixed results across financial, technology, and automotive sectors. Specifically, the index dipped by 12.95 points or 0.03% to conclude at 39,457.49, fluctuating within a range of 39,371.42 and 39,632.17. Performance varied among key players: Nissan Motor dropped 1.21%, Mazda Motor decreased by 0.78%, Toyota Motor fell 0.20%, and Honda Motor was down 0.46%. Meanwhile, Softbank Group gained 0.99%, Mitsubishi UFJ Financial rose by 0.41%, Mizuho Financial declined 0.18%, Sumitomo Mitsui Financial saw a 0.19% dip, Mitsubishi Electric increased 0.57%, Sony Group slid 1.01%, Panasonic Holdings saw a strong rally of 2.13%, and Hitachi declined 0.48%.
From Wall Street, there is a cautiously optimistic sentiment. U.S. major averages opened mixed on Monday and largely maintained that stance throughout the session. The Dow Jones Industrial Average shed 110.58 points or 0.25% to settle at 43,717.48, in contrast to the NASDAQ, which climbed 247.17 points or 1.24% to achieve a new record at 20,173.89. The S&P 500 also rose, adding 22.99 points or 0.38% to finish at 6,074.08.
Wall Street's overall strength is driven by favorable expectations regarding future interest rates, with the Federal Reserve's monetary policy decision on the horizon. The Fed is anticipated to continue its interest rate reductions, as indicated by CME Group's FedWatch Tool showing a 99.1% probability of a further 25 basis point cut.
The NASDAQ's rise was fueled by robust gains in semiconductor stocks, with the Philadelphia Semiconductor Index soaring 2.1%. Networking stocks joined this upward trend, pushing the NYSE Arca Networking Index up by 2.0% to reach a record high.
Despite these gains, buying enthusiasm was somewhat dampened by persistent inflation concerns, hinting that the Fed might slow down rate cuts more than previously expected next year.
In U.S. economic updates, a report from the Federal Reserve Bank of New York highlighted a significant decline in regional manufacturing activity for December.
Meanwhile, crude oil prices dipped on Monday due to worries over demand following weak economic data from China and concerns about tariffs. West Texas Intermediate Crude oil futures for January fell by $0.58, closing at $70.71 per barrel.
The material has been provided by InstaForex Company -
www.instaforex.com
