Rebound Anticipated For Japan Stock Market

(RTTNews) - The Japanese stock market on Monday snapped the two-day winning streak in which it had rallied more than 2,900 points or 4.7 percent. The Nikkei 225 now sits just above the 63,750-point plateau although it's likely to move back to the upside again on Tuesday.

The global forecast for the Asian markets is upbeat on sinking crude oil prices and optimism for an end to the conflict in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Nikkei finished sharply lower on Monday following losses among the technology stocks, automobile producers and rubber companies.

For the day, the index sank 607.12 points or 0.94 percent to finish at 63,754.90 after trading between 62,703.47 and 63,905.12.

The lead from Wall Street is solid as the major averages opened higher and continued to accelerate throughout the trading day, ending at session highs.

The Dow rallied 693.38 points or 1.32 percent to finish at 53,178.41, while the NASDAQ surged 540.04 points or 2.13 percent to end at 25,913.90 and the S&P 500 jumped 110.78 points or 1.48 percent to close at 7,600.50.

The rally on Wall Street came as crude oil prices have plummeted amid renewed optimism about an end to the conflict in the Middle East.

Crude oil prices plummeted on Monday, with supply disruption threats diminishing after U.S. President Donald Trump called off a planned attack on Iran. West Texas Intermediate crude for September delivery was down $4.77 5.63 percent at $79.90 per barrel.

Trump later claimed that talks between the U.S. and Iran would begin Monday afternoon, although Tehran has denied there are plans for direct negotiations with the U.S.

In U.S. economic news, the Institute for Supply Management said U.S. manufacturing activity increased more than expected in July.

Closer to home, Japan will release July figures for monetary base later this morning, with forecasts suggesting a fall of 13.0 percent on year following the 13.7 percent decline in June.