Japan Stock Market Due For Rebound On Thursday

(RTTNews) - The Japanese stock market has finished lower in two straight sessions, plummeting almost 3,900 points or 6 percent in that span. The Nikkei 225 now sits just above the 65,320-point plateau although it may bounce higher again on Thursday.

The global forecast for the Asian markets is flat to higher as positive sentiment from easing treasury yields was offset by another jump in crude oil prices. The European markets were mixed and the U.S. bourses were slightly higher and the Asian shares figure to split the difference.

The Nikkei finished sharply lower on Wednesday with losses in all sectors, especially among the technology, finance, paper, transportation and automobile sectors.

For the day, the index tumbled 2,134.30 points or 3.16 percent to finish at 65,326.42 after trading between 65,133.98 and 66,833.51.

The lead from Wall Street is cautiously optimistic as the major averages opened slightly higher on Wednesday and mostly stayed that was throughout the session.

The Dow climbed 119.65 points or 0.22 percent to finish at 53,463.05, while the NASDAQ added 41.38 points or 0.16 percent to close at 26,331.09 and the S&P 500 rose 16.22 points or 0.21 percent to end at 7,707.98.

The strength on Wall Street came amid a significant pullback by bond yields, with the 30-year bond yield pulling back further off its highest levels in nearly two decades. Yields moved sharply lower after the Treasury Department announced upscaled buyback operations for longer-term debt.

Stocks gave back some ground in afternoon trading as the minutes of the Federal Reserve's latest monetary policy revealed many officials believe an increase in interest rates would likely be necessary unless inflation declines.

Crude oil prices soared on Wednesday as the closure of Strait of Hormuz continues, extending supply disruption concerns. West Texas Intermediate crude for September delivery was up $1.18 or 1.39 percent at $86.12 per barrel.

Closer to home, Japan will provide July data for imports, exports and trade balance later this morning. Imports are expected to jump 26.5 percent on year, up from 25.4 percent in June. Exports are called higher by an annual 19.9 percent after rising 19.3 percent in the previous month. The trade deficit is pegged at 680.0 billion yen following the 409.9 billion yen shortfall a month earlier.