Renewed Support Expected For Japan Stock Market

(RTTNews) - The Japanese stock market has alternated between positive and negative finishes through the last six trading days since the end of 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 62,360-point plateau although it's tipped to move back to the upside on Wednesday. The global forecast for the largely oversold Asian markets is cautiously optimistic on hopes for an end to hostilities in the Middle East. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to move higher on Wednesday.

The Nikkei finished sharpy lower on Tuesday following losses from the financial shares, technology stocks and automobile producers. For the day, the index plunged 2,566.28 points or 3.95 percent to finish at 62,364.92 after trading between 61,923.60 and 64,573.18.

The lead from Wall Street is uncertain as the major averages opened mixed on Tuesday and trended slightly higher but still ended on opposite sides of the unchanged line.

The Dow rallied 537.24 points or 1.03 percent to finish at 52,747.32, while the NASDAQ slumped 55.17 points or 0.22 percent to close at 24,876.91 and the S&P 500 rose 15.60 points or 0.21 percent to end at 7,428.78.

The advance by the Dow was fueled by strong quarterly results from the likes of Sherwin-Williams (SHW) and Coca-Cola (KO), which roundly beat expectations and raised guidance.

Meanwhile, weakness among technology stocks weighed on the NASDAQ, with semiconductor and computer hardware stocks turning in some of the worst performances.

Outside of the tech sector, oil service stocks also saw significant weakness amid the extended nosedive by the price of crude oil.

Crude plunged again on Tuesday amid rising optimism over a resolution to the U.S.-Iran conflict, easing supply disruption concerns. West Texas Intermediate crude for September delivery shed $3.61 or 4.37 percent at $79.00 per barrel.