The Japanese stock market has experienced gains for two consecutive sessions, rising by over 270 points, or 0.7%. The Nikkei 225 currently stands slightly above 39,360 points, though it may face challenges in maintaining this momentum on Wednesday.
The outlook for Asian markets is grim, with anticipated downturns in the computer, semiconductor, and housing industries. With European and U.S. markets taking a hit, Asian exchanges are likely to reflect this downward trend.
On Tuesday, the Nikkei 225 saw a moderate increase, bolstered by strength in the automobile sector, while financials faltered, and technology shares provided a mixed performance. The index gained 207.08 points, or 0.53%, closing at 39,367.58, fluctuating between 39,171.69 and 39,465.14 throughout the day.
In terms of individual stocks, Nissan Motor decreased by 0.38%, Mazda Motor edged up 0.15%, Toyota Motor advanced 1.29%, and Honda Motor climbed 1.12%. Softbank Group experienced a 0.42% increase, while Mitsubishi UFJ Financial fell 0.44%, Mizuho Financial declined 0.31%, and Sumitomo Mitsui Financial dipped 0.37%. Mitsubishi Electric rose 0.81%, Sony Group surged 4.12%, Panasonic Holdings rallied 1.41%, yet Hitachi dropped 1.73%.
The sentiment from Wall Street indicates weakness, as major indices opened flat on Tuesday and remained relatively stable before dropping significantly later in the session. The Dow Jones Industrial Average fell by 154.10 points, or 0.35%, closing at 44,247.83. Meanwhile, the NASDAQ declined by 49.45 points, or 0.25%, finishing at 19,687.24, and the S&P 500 decreased by 17.94 points, or 0.30%, ending at 6,034.91.
Wall Street's downturn was driven by traders capitalizing on recent market strength, in anticipation of the Labor Department's upcoming report on consumer price inflation. Although the Federal Reserve is largely expected to cut rates by another 25 basis points next week, this data could influence expectations for future rate adjustments.
Currently, the CME Group's FedWatch Tool shows an 86.1% probability that the Fed will reduce rates by a quarter of a point next week, yet anticipates a 69.1% chance of holding rates steady in late January.
Oil futures ended Tuesday on a positive note, buoyed by optimism regarding increased demand from China following recent stimulus measures announced by the Chinese government. West Texas Intermediate Crude oil futures for January concluded up $0.22, or 0.32%, at $68.59 per barrel.
Domestically, Japan is set to release November's producer price figures later today. Forecasts suggest producer prices will remain consistent with October, showing a 0.2% monthly increase and a 3.4% annual rise.
