TOKYO (dpa-AFX) – The Japanese stock market is trading slightly lower on Monday after opening in the green, adding to the losses in the previous session. The benchmark S&P/ASX 200 is falling below the 39,100 level, despite positive Wall Street announcements on Friday, with weakness in some index weights partially offset by gains in financial and technology stocks.
The benchmark Nikkei 225 Index is down 16.70 or 0.04 percent at 38,191.33, after touching a high of 38,365.01 and a low of 37,958.55 earlier. Japanese shares ended slightly lower on Friday.
Market heavyweight SoftBank Group is losing nearly 2 percent and operator Uniqlo Fast Retailing is down nearly 4 percent. Among car makers, Honda gets almost 1 percent and Toyota contributes more than 1 percent.
In the technology area, Screen Holdings is gaining almost 5 percent, Tokyo Electron is adding almost 1 percent and Advantest is going up 0.2 percent.
In the banking sector, Sumitomo Mitsui Financial is gaining almost 4 percent, Mizuho Financial is adding more than 2 percent and Mitsubishi UFJ Financial is up more than 1 percent.
The main exports are mixed. Panasonic is losing more than 1 percent and Sony is down nearly 1 percent, while Canon and Mitsubishi Electric are up 0.2 percent each.
Among other big losers, Shiseido is falling nearly 8 percent, while Mercari, Oriental Land and Dai Nippon Printing are losing nearly 3 percent each.
On the other hand, Dai-ichi Life gains more than 5 percent and Aozora Bank contributes more than 3 percent, while Seiko Epson, Kuraray, Fuji Electric, Kansai Electric Power, Hitachi and Resona Holdings all advanced nearly 3 percent each.
In economic news, the manufacturing sector in Japan continued to contract in November, and at a faster pace, the latest survey from Jibun Bank appeared on Monday with a manufacturing PMI score of 49.0. That’s down from 49.2 in October, and moves further below the bull-or-bust line of 50 that separates expansion from contraction. The decrease was small, but the strongest seen since March.
In the currency market, the US dollar is trading in the lowest yen-150 range on Monday.
On Wall Street, stocks moved back to the upside on Friday as trading resumed after the Thanksgiving holiday on Thursday following the pullback seen during Wednesday’s session. With the rebound, the major averages more than offset the previous session’s losses, lifting the Dow and the S&P 500 to new closing levels.
The major averages pulled back from their best levels going into the close but remained very bullish. The Dow rose 188.59 points or 0.4 percent to 44,910.65, the Nasdaq advanced 157.69 points or 0.8 percent to 19,218.17 and the S&P 500 climbed 33.64 points or 0.6 percent to 6,032.38.
Major European markets also moved to the upside during the session. While Germany’s DAX Index jumped 1.0 percent, France’s CAC 40 Index rose 0.8 percent and the UK’s FTSE 100 Index rose 0.1 percent.
Crude oil prices settled lower on Friday after OPEC postponed its meeting until December 5, despite expectations that the group will delay output increases. West Texas crude oil futures for January were up $0.72 or 1.1 percent at $68.00 a barrel. WTI futures lost 4.5 percent on the week.
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2024-12-02 02:56:00
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## Japanese Stocks Dip Despite Positive Wall Street signals: An Expert Analysis
**World Today News** speaks with **Dr.Kenzo Tanaka**, Professor of Economics at the University of Tokyo, to analyze the recent dip in the Japanese stock market.
**WTN:** Dr. Tanaka, the japanese stock market opened higher today, mirroring the positive sentiment from Wall Street’s Friday gains, but is now trading lower. What factors do you believe are contributing to this downturn?
**Dr. tanaka:** While Wall Street’s Friday performance indeed offered some hope, the Japanese market is facing a confluence of domestic and global headwinds.
First, concerns about the Japanese economy remain prevalent. The recent weak economic data, coupled with persistent deflationary pressures, are weighing heavily on investor sentiment.
Second,the resurgence of COVID-19 cases in Japan,despite a relatively high vaccination rate,is casting a shadow of uncertainty over the economic recovery.This is likely leading to some risk aversion among investors.
Lastly, global economic uncertainty, fueled by rising inflation and potential interest rate hikes in major economies, is affecting investor appetite for riskier assets like stocks.
**WTN:** The S&P/ASX 200 is currently trading below the 39,000 level. Are there specific sectors or companies contributing substantially to this decline?
**Dr. Tanaka:** We are seeing weakness in several key sectors.For example, exporters are facing headwinds due to the strengthening yen, making their products less competitive abroad.
Moreover, the automotive sector is struggling with supply chain disruptions and rising raw material costs. These factors are impacting profitability and investor confidence.
**WTN:** Looking ahead, what are your predictions for the japanese stock market in the short to medium term?
**dr. Tanaka:** The short-term outlook remains cautious.
The Japanese government is implementing stimulus measures to support the economy, and the Bank of Japan maintains its accommodative monetary policy stance.
Though, the effectiveness of these measures in the face of enduring economic challenges remains to be seen.
Furthermore, the trajectory of the COVID-19 pandemic and global economic developments will continue to play a important role in shaping investor sentiment.
**WTN:** Thank you for providing your expert insights, Dr. Tanaka.
**Dr. Tanaka:** My pleasure.
