Overbought Japan Market Nonetheless Called Higher

(RTTNews) - The Japanese stock market has tracked to the upside in three consecutive sessions, climbing more than 5,000 points or 8 percent in that span. Now at a record closing high, the Nikkei 225 sits just above the 69,300-point plateau and it may extend its gains on Tuesday.

The global forecast for the Asian markets is upbeat, even though they've already had the chance to respond the easing of tensions in the Middle East. The European markets were mixed and the U.S. bourses were up and the Asian markets are tipped to at least open to the upside.

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

For the day, the index skyrocketed 3,297.46 points or 4.99 percent to finish at 69,317.50 after trading between 66,783.22 and 69,682.23.

Among the actives, Nissan Motor accelerated 5.84 percent, while Mazda Motor vaulted 4.51 percent, Toyota Motor jumped 4.58 percent, Honda Motor expanded 3.33 percent, Softbank Group skyrocketed 10.31 percent, Mitsubishi UFJ Financial advanced 2.53 percent, Mizuho Financial climbed 3.04 percent, Sumitomo Mitsui Financial collected 1.76 percent, Mitsubishi Electric spiked 5.64 percent, Sony Group rose 0.85 percent, Panasonic Holdings soared 5.53 percent and Hitachi gained 1.72 percent.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Monday and remained that way throughout the trading day.

The Dow jumped 468.77 points or 0.92 percent to finish at 51,671.03, while the NASDAQ surged 795.10 points or 3.07 percent to end at 26,683.94 and the S&P 500 rallied 122.83 points or 1.65 percent to close at 7,554.29.

The rally on Wall Street followed news that the U.S. and Iran have reached an agreement to end more than three months of war.

The agreement reportedly extends the U.S.-Iran ceasefire for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.

Crude oil prices plummeted Monday after the U.S. and Iran reached an agreement to end their conflict and allow the immediate resumption of trade via the Strait of Hormuz. West Texas Intermediate crude for July delivery was down $4.31 or 5.08 percent at $80.57 per barrel.

In U.S. economic news, a report released by the Federal Reserve showed a modest increase in industrial production in the U.S. in May.

Closer to home, the Bank of Japan will conclude its monetary policy meeting and announce its decision on rates; the BoJ is expected to hike its benchmark lending rate by 25 basis points, to 1.00 percent from 0.75 percent.