Continued Consolidation Called For Japan Stock Market

(RTTNews) - The Japan stock market has finished lower in back-to-back sessions, shedding more than 940 points or 1.9 percent along the way. The Nikkei 225 now rests just above the 50,320-point plateau and it's expected to open under pressure again on Tuesday.

The global forecast for the Asian markets is negative on valuation concerns, especially among technology shares. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The Nikkei finished slightly lower on Monday following losses from the automobile producers and mixed performances from the financial shares and technology stocks.

For the day, the index dipped 52.62 points or 0.10 percent to finish at 50,323.91 after trading between 49,845.86 and 50,398.16. Among the actives, Nissan Motor plunged 4.87 percent, while Mazda Motor tanked 3.11 percent, Toyota Motor tumbled 1.92 percent, Honda Motor surrendered 2.54 percent, Softbank Group rallied 2.83 percent, Mitsubishi UFJ Financial skidded 1.00 percent, Mizuho Financial fell 0.26 percent, Sumitomo Mitsui Financial soared 4.57 percent, Mitsubishi Electric advanced 0.85 percent, Sony Group stumbled 3.23 percent, Panasonic Holdings sank 0.75 percent and Hitachi gained 0.77 percent.

The lead from Wall Street is soft as the major averages spent the first half of Monday's trade relatively flat before tumbling in the afternoon, finishing near daily lows.

The Dow tumbled 557.24 points or 1.18 percent to finish at 46,590.24, while the NASDAQ dropped 192.51 points or 0.84 percent to close at 22,708.07 and the S&P 500 sank 61.70 points or 0.92 percent to end at 6,672.41.

The weakness on Wall Street came as valuation concerns resurfaced ahead of the release of quarterly results from Nvidia (NVDA) after the markets close on Wednesday.

Traders were also looking ahead to the release of U.S. economic data that was delayed due to the government shutdown. While the reports will be backward looking, the data could still impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting in December.

Crude oil prices edged lower on Tuesday as long-term oversupply concerns of a supply-demand mismatch continue to linger. West Texas Intermediate crude for December delivery dipped $0.09 or 0.13 percent at $60.01 per barrel.