The Japanese stock market has experienced gains over the last four consecutive sessions, collectively adding over 750 points, or an increase of 1.9 percent. As a result, the Nikkei 225 closed just shy of the 39,850 mark. However, market indicators suggest a downtrend could occur on Friday.
Globally, the outlook for Asian markets appears weak, heavily influenced by anticipated declines in oil and technology stocks. While European markets showed a mixed but stable performance, U.S. markets ended on a negative note. Asian markets are expected to strike a balance between these movements.
On Thursday, the Nikkei 225 recorded a notable rise, driven by upward momentum in financial and technology stocks, although the performance of car manufacturers was mixed. The index climbed 476.91 points, or 1.21 percent, to conclude at 39,849.14, fluctuating between 39,827.59 and 40,091.55 throughout the day.
Among active stocks, Nissan Motor fell by 2.16 percent, while Mazda Motor and Honda Motor both declined by 0.50 percent. In contrast, Toyota Motor rose by 1.34 percent, Softbank Group increased by 1.93 percent, Mitsubishi UFJ Financial gained 0.52 percent, Mizuho Financial added 0.23 percent, Sumitomo Mitsui Financial edged down by 0.10 percent, Mitsubishi Electric surged by 2.00 percent, Sony Group ascended by 2.97 percent, Panasonic Holdings rose by 2.74 percent, and Hitachi climbed by 0.95 percent.
Wall Street provided a discouraging lead, as major indices began Thursday mixed and subsequently dropped, closing near session lows. The Dow fell 234.44 points or 0.64 percent to end at 43,914.12. The NASDAQ declined by 132.05 points or 0.66 percent to settle at 19,769.84, while the S&P 500 decreased by 32.94 points or 0.54 percent to finish at 6,051.25.
The downturn on Wall Street was attributed to traders capitalizing on previous gains, particularly from a robust performance on Wednesday when the NASDAQ surpassed the 20,000 threshold for the first time. Additional negative sentiment was fueled by a Labor Department report indicating a higher-than-expected rise in producer prices in November.
Even with expectations for the Federal Reserve to reduce interest rates next week, concerns have surfaced regarding the speed of rate cuts anticipated early next year following this data.
In the oil market, futures dipped after a three-day rally, with the International Energy Agency forecasting a surplus in oil supply for the following year. West Texas Intermediate Crude oil futures for January decreased by $0.27, or 0.4 percent, closing at $70.02 per barrel.
Domestically, the Bank of Japan is set to release its quarterly Tankan survey results on economic sentiment later today. The large manufacturers index is projected to maintain a score of +13 with an outlook of +14, consistent with the previous survey. Conversely, the small manufacturers index is anticipated to decline to -2 from 0 in the previous quarter.
For capital expenditures, large all-industry capex is expected to increase by 9.6 percent, a slight reduction from 10.6 percent in the third quarter. Meanwhile, small all-industry capex is forecast to rise by 3.5 percent, up from 2.6 percent in the previous quarter.
Japan will also finalize its October industrial production figures, with an anticipated monthly growth of 3.0 percent, compared to 1.6 percent in the previous month.
The material has been provided by InstaForex Company -
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