(RTTNews) – The Japanese stock market is notably lower on Wednesday after being in the green earlier, extending the losses in the previous seven sessions, with the benchmark Nikkei index above the 27,600 level, ignoring the broadly positive cues overnight from Wall Street, as traders are rattled by reports that support for the new government is lower than the predecessor government when it came to power last year.
Market sentiment was also dented after new Japanese Prime Minister Fumio Kishida’s proposal to raise taxes on capital gains and the IMF’s current expectations of global economic growth falling slightly below its July forecast of 6 percent.
The benchmark Nikkei 225 Index closed the morning session at 27,616.52, down 205.60 points or 0.74 percent, after hitting a low of 27,475.88 and a high of 28,209.82 earlier. Japanese stocks closed sharply lower on Tuesday.
Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is declining more than 2 percent. Among automakers, Honda is losing more than 2 percent and Toyota is declining almost 3 percent.
In the tech space, Screen Holdings is losing almost 2 percent, Advantest is declining 2.5 percent and Tokyo Electron is down almost 2 percent.
In the banking sector, Sumitomo Mitsui Financial is gaining almost 1 percent, Mizuho Financial is adding almost 2 percent and Mitsubishi UFJ Financial is rising more than 2 percent.
Among the major exporters, Panasonic is losing more than 1 percent and Sony is declining almost 1 percent, while Canon and Mitsubishi Electric are gaining more than 1 percent each.
Among the other major losers, Mitsubishi Motors is losing almost 7 percent and Takeda Pharmaceutical is down almost 6 percent, while Keisei Electric Railway, Kikkoman and ANA Holdings are declining almost 4 percent each. Mazda Motor, Nissan Motor, Tokyu and Kyowa Kirin are lower by more than 3 percent each, while Kawasaki Kisen Kaisha, East Japan Railway and Central Japan Railway are down almost 3 percent each.
Conversely, Sumitomo Osaka Cement is soaring almost 11 percent, Taiheiyo Cement surging almost 8 percent, Pacific Metals is gaining more than 6 percent, Nippon Electric Glass is adding almost 6 percent and Tokuyama is up more than 5 percent, while Idemitsu Kosan, Ebara, Unitika, Yokogawa Electric and Sojitz are all rising almost 4 percent each.
In the currency market, the U.S. dollar is trading in the mid-111 yen-range on Wednesday.
On Wall Street, stocks showed a strong move back to the upside during trading on Tuesday, after moving sharply lower in the previous session. The major averages all showed strong upward moves on the day.
The major averages pulled back off their highs going into the close but remained firmly positive. The Dow advanced 311.75 points or 0.9 percent to 34,314.67, the Nasdaq surged 178.35 points or 1.3 percent to 14,433.83 and the S&P 500 jumped 45.26 points or 1.1 percent to 4,345.72.
The major European markets also moved to the upside on the day. While the French CAC 40 Index surged up by 1.5 percent, the German DAX Index jumped by 1.1 percent and the U.K.’s FTSE 100 Index advanced by 0.9 percent.
Crude oil prices advanced Tuesday, extending recent gains after OPEC decided to stick to its plan of gradually raising crude production. West Texas Intermediate Crude oil futures for November gained $1.31 or 1.7 percent at $78.93 a barrel, a fresh seven-year high.
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