Japan Shares May Run Out Of Steam On Wednesday

(RTTNews) - The Japanese stock market has moved higher in two straight sessions, advancing more than 1,730 points or 3.4 percent along the way. The Nikkei 225 now sits just above the 49,300-point plateau although it's likely to see profit taking on Wednesday.

The global forecast for the Asian markets is murky, with optimism over earnings likely offset by profit taking. The European markets were slightly higher and the U.S. bourses were mixed and flat and the Asian markets figure to follow the latter lead.

The Nikkei finished modestly higher on Tuesday following mixed performances from the financial shares, technology stocks and automobile producers.

For the day, the index added 130.56 points or 0.27 percent to finish at 49,316.06 after trading between 49,127.20 and 49,945.95. Among the actives, Nissan Motor eased 0.03 percent, while Mazda Motor dipped 0.09 percent, Toyota Motor and Sumitomo Mitsui Financial both perked 0.07 percent, Honda Motor sank 0.80 percent, Softbank Group fell 0.26 percent, Mitsubishi UFJ Financial shed 0.75 percent, Mizuho Financial climbed 1.05 percent, Mitsubishi Electric slipped 0.35 percent, Sony Group was down 0.05 percent, Panasonic Holdings advanced 0.98 percent and Hitachi tumbled 1.70 percent.

The lead from Wall Street offers little clarity as the major averages opened flat on Tuesday and hugged the line for most of the day, finally finishing on opposite sides and little changed.

The Dow gained 218.16 points or 0.47 percent to finish at a record 46,924.74, while the NASDAQ slipped 36.88 points or 0.16 percent to end at 22,953.67 and the S&P 500 perked 0.22 points or 0.00 percent to close at 6,735.35.

The advanced by the Dow reflected a positive reaction to solid earnings news from companies like 3M (MMM), Coca-Cola (KO), Salesforce (CRM), Amazon (AMZN) and Sherwin-Williams (SHW).

Traders may have been reluctant to continue buying stocks amid lingering concerns about U.S.-China trade tensions and the ongoing government shutdown.

A lack of major U.S. economic data due in part to the shutdown may also have kept some traders on the sidelines ahead of the release of closely watched consumer price inflation data on Friday.

Crude oil prices advanced on Tuesday as easing U.S.-China trade friction overrode a stronger greenback and excess supply concerns. West Texas Intermediate crude for November delivery was up $0.38 or 0.66 percent at $57.90 per barrel.

Closer to home, Japan will release September figures for imports, exports and trade balance later this morning. Imports are expected to rise 0.6 percent on year after sinking 5.2 percent in August. Exports are called higher by an annual 4.6 percent after easing 0.1 percent in the previous year. The trade surplus is pegged at 22.0 billion yen following the 242.8 billion yen shortfall a month earlier.