The Japanese stock market experienced a modest increase on Monday, making a recovery following a slight dip earlier in the session. This movement came after the losses recorded in the previous trading day. The benchmark S&P/ASX 200 is approaching the 39,200 level, reflecting the mixed signals last observed on Wall Street. Gains in some major index constituents and automakers are being somewhat offset by a downturn in technology stocks.
The Nikkei 225 Index has risen by 94.79 points, or 0.24 percent, reaching 39,185.96 after having peaked at 39,332.55 earlier in the session. Japanese stocks saw a significant decline at the close on Friday.
Leading market players such as SoftBank Group have climbed by over 2 percent, while Uniqlo's operator, Fast Retailing, has improved by more than 1 percent. In the automotive sector, Honda is up by nearly 1 percent and Toyota has increased by 0.3 percent.
Conversely, in the technology sector, Screen Holdings has decreased by 1.5 percent and Advantest has dropped almost 5 percent, with Tokyo Electron down slightly by 0.2 percent.
The banking sector shows Sumitomo Mitsui Financial gaining nearly 1 percent, whereas Mitsubishi UFJ Financial has edged down by 0.2 percent. Mizuho Financial remains unchanged.
Performance among major exporters is varied. Panasonic and Sony have each gained almost 2 percent, while Canon is up by 0.5 percent. Meanwhile, Mitsubishi Electric has lost nearly 1 percent.
Significant gainers include Rakuten Group with a surge of over 7 percent, while Yamato Holdings and Nomura Research Institute are up nearly 5 percent each. BANDAI NAMCO, Recruit Holdings, and NEXON have each advanced around 3 percent.
On the downside, ZOZO has dropped almost 3 percent.
An economic highlight, Japan's GDP grew by a seasonally adjusted 0.3 percent in the third quarter of 2024, surpassing the expectation of a 0.2 percent increase, as reported by the Cabinet Office on Monday. This comes after a revised growth of 0.5 percent in the previous quarter, originally reported as 0.2 percent. On an annual basis, GDP rose by 1.2 percent, exceeding the forecast of a 0.9 percent rise.
Capital expenditure declined by 0.1 percent compared to the previous quarter, bettering the predicted 0.2 percent fall. External demand dipped 0.1 percent, with the GDP price index showing an annual gain of 2.4 percent, while private consumption increased by 0.7 percent quarter over quarter.
In currency markets, the U.S. dollar is trading in the upper range of 149 yen on Monday.
Turning to Wall Street, U.S. stock indexes initially rose early Friday before exhibiting mixed performances as the trading day progressed. The Nasdaq and S&P 500 remained positive and reached new record highs by the end of the session, whereas the Dow Jones turned negative.
The Nasdaq, known for its heavy tech focus, closed near its day's high, rising by 159.05 points or 0.8 percent to finish at 19,859.77. The S&P 500 added 15.16 points or 0.3 percent to settle at 6,090.27, while the Dow declined by 123.19 points or 0.3 percent to end at 44,642.52.
Similarly, European markets closed with mixed outcomes. The French CAC 40 Index climbed by 1.3 percent, and the German DAX Index edged up by 0.1 percent. However, the U.K.'s FTSE 100 Index dropped by 0.5 percent.
In the commodities market, crude oil prices fell on Friday, pressured by anticipated oversupply. West Texas Intermediate (WTI) crude oil futures for January dropped by $1.10, or 1.61 percent, to settle at $67.20 per barrel, marking a nearly 1 percent decline over the week.
