Japan Stock Market Tipped To Open In The Green

(RTTNews) - The Japanese stock market on Tuesday ended the two-day losing streak in which it had plummeted more than 4,600 points or 7 percent. The Nikkei 225 now sits just above the 66,230-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is positive thanks to solid earnings news. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The Nikkei finished sharply higher on Tuesday following gains among the financial shares, technology stocks and automobile producers.

For the day, the index soared 2,091.07 points or 3.26 percent to finish at the daily high of 66,232.19 after trading as low as 64,203.47.

The lead from Wall Street is firm as the major averages opened higher on Tuesday and remained in the green throughout the trading day, ending near session highs.

The Dow jumped 385.38 points or 0.74 percent to finish at 52,224.64, while the NASDAQ advanced 329.13 points or 1.29 percent to end at 25,837.21 and the S&P 500 gained 65.92 points or 0.89 percent to close at 7,509.20.

A positive reaction to some of the latest earnings news inspired traders to pick up stocks such as 3M (MMM), General Motors (GM) and Novartis (NVS) at reduced levels.

Strength among technology stocks also contributed to the rally, as reflected by the jump by the tech-heavy NASDAQ, with the NYSE Arca Computer Hardware Index soaring 5.9 percent and the Philadelphia Semiconductor Index jumping 5.2 percent.

Crude oil prices spiked on Tuesday as the U.S. attacked Iran for the 10th straight day, reinforcing supply concerns due to the Strait of Hormuz crisis. West Texas Intermediate crude for August delivery was up $1.77 or 2.13 percent at $85.00 per barrel.

Closer to home, Japan will release June figures for imports, exports and trade balance later this morning. Imports are expected to rise 21.0 percent on year, up from 12.5 percent in May. Exports are called higher by an annual 18.6 percent, accelerating from 16.8 percent in the previous month. The trade deficit is pegged at 120.0 billion yen vs. the 291.8 billion yen shortfall a month earlier.