Rebound Anticipated For Japan Stock Market

(RTTNews) - The Japan stock market headed south again on Friday, one day after ending the two-day slide in which it had stumbled more than 1,250 points or 1.9 percent. The Nikkei 225 now sits just above the 64,000-point plateau although it may bounce higher again on Monday.

The global forecast for the Asian markets is positive on easing oil prices and likely bargain hunting. 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 Friday following losses among technology, paper, transportation, communications and manufacturing sectors.

For the day, the index plunged 1,259.61 points or 1.93 percent to finish at 64,011.34 after trading between 63,208.63 and 64,312.02.

The lead from Wall Street is firm as the major averages opened higher and remained solidly in the green throughout the trading day.

The Dow jumped 509.19 points or 0.98 percent to finish at 52,573,29, while the NASDAQ rallied 251.31 points or 0.96 percent to close at 26,333.04 and the S&P 500 gained 65.28 points or 0.86 percent to end at 7,656.98.

Despite the rebound on the day, the major averages all moved to the downside for the holiday-shortened week. The Dow slumped by 1.6 percent, while the S&P and the NASDAQ slid by 0.8 percent and 0.7 percent, respectively.

The recovery rally on Wall Street came amid a sharp pullback by the price of crude oil, which had skyrocketed over the past few days, while bargain hunting also contributed to the upswing.

Crude oil prices slumped on Friday amid hopes of a possible reopening of the Strait of Hormuz on reports of a possible meeting between Iran and the members of the Gulf Cooperation Council to defuse the gulf crisis. West Texas Intermediate Crude for October delivery was down $2.63 or 2.57 percent at $99.85 per barrel.

Traders shrugged off the Labor Department's report on consumer price inflation in August, which was in line with forecasts. The data solidified expectations that the Federal Reserve will raise interest rates by a quarter-point this week, although it's largely already priced in.

Closer to home, Japan will provide revised July numbers for industrial production later today; no change is expected from the preliminary reading that saw monthly increases of 0.1 percent in production and 4.1 percent in capacity utilization.