On Friday, the Japanese stock market broke its three-day winning streak during which it gained around 1,250 points, equivalent to a 3% increase. The Nikkei 225 Index settled just below the 39,900-point mark but is anticipated to ascend again on Monday.
The global outlook for Asian markets is positive, with anticipated gains primarily driven by technology and oil stocks. While the European markets declined, the U.S. markets showed gains, and it is expected that Asian markets will follow the latter trend.
The Nikkei experienced modest losses on Friday, impacted by downturns in financial, technology, and automotive sectors. Specifically, the index dropped by 386.66 points or 0.96%, concluding at 39,894.54, after fluctuating between 39,864.46 and 40,325.78 throughout the session.
Key performers included: Nissan Motor, which fell by 5.73%; Mazda Motor, down by 0.60%; Toyota Motor, which declined by 1.32%; and Honda Motor, which edged up by 0.26%. Additionally, SoftBank Group decreased by 0.75%, whereas Mitsubishi UFJ Financial increased by 0.74%. Meanwhile, Mizuho Financial slipped by 0.51%, Sumitomo Mitsui Financial decreased by 0.08%, Mitsubishi Electric fell by 0.56%, Sony Group dropped by 1.40%, Panasonic Holdings ticked up by 0.06%, and Hitachi fell by 1.67%.
Wall Street provided a positive lead, with major indices opening higher on Friday and staying in positive territory, closing near their session highs. The Dow Jones Industrial Average surged 339.83 points or 0.80% to finish at 42,732.13. The NASDAQ jumped by 340.88 points or 1.77% to close at 19,621.68, and the S&P 500 rose by 73.92 points or 1.26% to end at 5,942.47.
Over the holiday-shortened week, the Dow decreased by 0.6%, while both the NASDAQ and the S&P 500 slipped by 0.5%. This strength in Wall Street came as traders sought to acquire stocks at relatively lower levels following recent market weakness. Some traders were absent due to the New Year's Day holiday midweek.
In U.S. economic news, the Institute for Supply Management indicated that December saw a slower contraction in manufacturing activity.
Meanwhile, oil prices rose on Friday as optimism grew about demand prospects, evidenced by data showing a decline in U.S. crude inventories. West Texas Intermediate (WTI) crude oil futures for February delivery gained $0.83 or 1.13%, closing at $73.96 per barrel.
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