On Friday, the Japanese stock market experienced another decline following a brief respite that broke a five-day losing streak, during which it dropped over 1,630 points, equivalent to 4.3 percent. The Nikkei 225 now hovers just above the 38,450 mark, with expectations of a rebound come Monday.
The global outlook for Asian markets remains optimistic, driven by an improved perspective on interest rates. Both European and U.S. markets saw robust gains, with Asian exchanges expected to follow suit.
The Nikkei ended the day slightly lower on Friday, with financial stocks taking a hit and technology and automotive sectors showing mixed results.
On Friday, the index fell by 121.14 points or 0.31 percent, closing at 38,451.46. During the trading session, it fluctuated between 38,055.68 and 38,503.94.
In terms of individual performances: Nissan Motor rose by 1.14 percent, Mazda Motor decreased by 0.69 percent, Toyota Motor fell sharply by 1.73 percent, Honda Motor edged up by 0.27 percent. Meanwhile, Softbank Group slipped by 1.33 percent, Mitsubishi UFJ Financial dropped by 1.19 percent, Mizuho Financial was down by 1.61 percent, Sumitomo Mitsui Financial lost 0.76 percent, Mitsubishi Electric decreased slightly by 0.24 percent, Sony Group increased by 0.50 percent, Panasonic Holdings went up by 0.26 percent, and Hitachi grew by 0.24 percent.
Wall Street provided a positive lead with major indices opening strongly on Friday and maintaining momentum throughout the day, closing near their session highs.
The Dow Jones Industrial Average surged 334.73 points or 0.78 percent, finishing at 43,487.83. The NASDAQ advanced 291.90 points or 1.51 percent, ending at 19,630.20, while the S&P 500 climbed 59.30 points or 1.00 percent to close at 5,996.66.
For the week, the Dow increased by 3.7 percent, S&P 500 rose by 2.9 percent, and the NASDAQ grew by 2.5 percent.
Stocks have gained from a recent decline in treasury yields, although the yield on the benchmark ten-year note recovered from an early slump, ending the day largely flat. The recent yield retreat follows U.S. inflation data that has reignited optimism regarding interest rates.
Bolstering this optimism, Federal Reserve Governor Christopher Waller conveyed to CNBC that the central bank might reduce interest rates multiple times within the year, should inflation decrease as anticipated.
Crude oil prices saw a notable decline on Friday, continuing the steep drop from the previous session. West Texas Intermediate for February delivery declined by $0.80 or 1 percent, settling at $77.88 a barrel on Friday. Throughout the week, crude's rise was approximately 1 percent.
Domestically, Japan is set to release November data on core machinery orders later today. Expectations are for a 0.7 percent monthly decline but a 5.6 percent annual increase, following gains of 2.1 percent monthly and 5.6 percent annually in October.
Additionally, Japan will publish finalized figures for November’s industrial production and the tertiary industry activity index. Previously, industrial production had decreased by 2.3 percent month-on-month, while the tertiary index registered a score of 0.30.
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