The Japanese stock market has endured declines over the past two sessions, shedding over 475 points or 1.3 percent in total. As it stands, the Nikkei 225 hovers slightly above the 39,600-point mark, but it is anticipated that the market might stabilize on Friday.
The outlook for Asian markets remains unclear with the U.S. markets closed on Thursday and European markets exhibiting a slight upward trend. It's likely that Asian markets, including the Nikkei, will follow this European trend.
On Thursday, the Nikkei recorded a significant drop, influenced by declines in financial, technology, and automobile sectors. The index plummeted 375.97 points or 0.94 percent, ending the day at 39,605.09. Trading fluctuated between a low of 39,385.05 and a high of 39,930.07.
In the marketplace, major players like Nissan Motor took a 3.64 percent hit, Mazda Motor fell 4.33 percent, Toyota Motor decreased by 2.21 percent, and Honda Motor dropped 2.57 percent. Softbank Group declined by 0.45 percent, while Mitsubishi UFJ Financial and Mizuho Financial saw declines of 0.08 percent and 1.17 percent respectively. Elsewhere, Sumitomo Mitsui Financial fell 1.21 percent, Mitsubishi Electric tumbled 2.69 percent, Sony Group retreated 1.37 percent, Panasonic Holdings decreased 1.44 percent, and Hitachi surrendered 1.41 percent.
There is no lead from Wall Street owing to the closure of U.S. financial markets on Thursday in honor of former U.S. President Jimmy Carter, who passed away in late December at the age of 100.
Market participants are eagerly awaiting the U.S. Labor Department's monthly jobs report expected later today, which could provide further insight into the labor market's resilience.
Oil prices climbed on Thursday amid continued optimism regarding global oil demand and foreseeably tight supply conditions due to sanctions on Iranian and Russian crude. February futures for West Texas Intermediate Crude increased by $0.60, or 0.82 percent, to settle at $73.92 per barrel.
Domestically, Japan is set to release November’s household spending figures later today. Forecasts suggest a 0.9 percent dip on a month-to-month basis and a 0.8 percent decrease year-over-year, following a 2.9 percent monthly increase and a 1.3 percent annual decline in October. Additionally, Japan will unveil November's data for its leading and coincident indexes, which in October showed rises of 0.2 percent and 2.8 percent respectively.
The material has been provided by InstaForex Company -
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