Renewed Support Anticipated For Japan Stock Market

(RTTNews) - The Japanese stock market on Wednesday ended the two-day winning streak in which it had risen more than 160 points or 0.3 percent. The Nikkei 225 now sits just above the 50,600-point plateau although it's expected to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat following the FOMC's rate decision and optimism over future moves. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The Nikkei finished modestly lower on Wednesday following gains from the automobile producers, weakness from the financial shares and a mixed picture from the technology stocks.

For the day, the index lost 52.30 points or 0.10 percent to finish at 50,602.80 after trading between 50,329.27 and 51,107.77. Among the actives, Nissan Motor tumbled 1.40 percent, while Mazda Motor accelerated 1.59 percent, Toyota Motor rallied 1.63 percent, Honda Motor soared 3.31 percent, Softbank Group sank 0.74 percent, Mitsubishi UFJ Financial shed 0.72 percent, Mizuho Financial fell 0.23 percent, Sumitomo Mitsui Financial collected 0.23 percent, Mitsubishi Electric advanced 0.96 percent, Sony Group tanked 2.88 percent, Panasonic Holdings surged 3.15 percent and Hitachi lost 0.47 percent.

The lead from Wall Street is positive as the major averages opened flat and hugged the line before taking off late in the day.

The Dow jumped 497.46 points or 1.05 percent to finish at 48,057.75, while the NASDAQ added 77.67 points or 0.33 percent to close at 23,654.16 and the S&P 500 gained 46.17 points or 0.67 percent to end at 6,886.68.

The late-day strength on Wall Street came after the Fed announced its widely expected decision to cut interest rates by another quarter point, matching the rate cuts seen in September and October.

While a majority of Fed officials voted to cut rates by another quarter point, three cast dissenting votes for the first time since September 2019. The central bank's latest summary of economic projections also showed significant divisions about the outlook for rates.

Despite the mixed views, traders seem optimistic about the outlook for rates, potentially reflecting hopes for a move dovish regime under President Donald Trump's new Fed Chair choice.

Crude oil prices edged higher Wednesday after the American Petroleum Institute said U.S. crude inventories decreased much more than expected. West Texas Intermediate crude for January delivery was up $0.20 or 0.34 percent at $58.45 per barrel.