Japan Shares May Find Traction On Thursday

(RTTNews) - The Japanese stock market has moved lower in four straight sessions, surrendering almost 1,200 points or 2.7 percent along the way. The Nikkei 225 now sits just above the 44,550-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The Nikkei finished sharply lower on Wednesday following losses from the financial shares, technology stocks and automobile producers.

For the day, the index dropped 381.78 points or 0.85 percent to finish at 44,550.85 after trading between 44,357.65 and 44,874.42. Among the actives, Nissan Motor stumbled 2.36 percent, while Mazda Motor tanked 2.13 percent, Toyota Motor dropped 0.98 percent, Honda Motor slumped 1.27 percent, Softbank Group surrendered 2.38 percent, Mitsubishi UFJ Financial plunged 3.17 percent, Mizuho Financial cratered 3.83 percent, Sumitomo Mitsui Financial plummeted 3.09 percent, Mitsubishi Electric tumbled 2.31 percent, Sony Group skidded 1.03 percent, Panasonic Holdings retreated 1.74 percent and Hitachi declined 1.40 percent.

The lead from Wall Street remains cautiously optimistic as the major averages opened lower on Wednesday but trended higher through the session and ended with modest gains.

The Dow added 43.21 points or 0.09 percent to finish at a record 46,441.10, while the NASDAQ gained 95.15 points or 0.42 percent to close at 22.755.16 and the S&P 500 rose 22.74 points or 0.34 percent to end at 6,711.20, also a record.

The initial pullback came after the U.S. government officially shut down early this morning after lawmakers failed to pass a temporary spending bill.

However, the early selling pressure was offset by optimism about the outlook for interest rates following the release of disappointing private sector employment data.

The subsequent turnaround also came as analysts pointed out that the markets have historically not been materially impacted by government shutdowns.

Crude oil prices fell sharply again Wednesday on concerns of excess supply after OPEC said it will hike output more than expected in November. West Texas Intermediate crude for November delivery was down by $0.60 or 0.96 percent at $61.77 per barrel.

Closer to home, Japan will provide September figures for its monetary base later this morning; in August, the base was down 3.9 percent on year.