Profit Taking Anticipated For Japan Stock Market

(RTTNews) - The Japanese stock market has moved higher in consecutive trading days, gathering more than 1,050 points or 2.5 percent in that span. The Nikkei 225 now sits just above the 41,825-point plateau although investors may lock in gains on Friday.

The global forecast for the Asian markets is cautiously optimistic on the improving outlook for trade deals. The European and U.S. markets were mixed and little changed and the Asian markets are likely to follow that lead, with some profit taking in order.

The Nikkei finished sharply higher on Thursday following gains from the financial shares, technology stocks and automobile producers.

For the day, the index jumped 655.02 points or 1.59 percent to finish at 41,826.34 after trading between 41,554.18 and 42,065.83.

Among the actives, Nissan Motor accelerated 1.55 percent, while Mazda Motor strengthened 1.60 percent, Toyota Motor fell 0.35 percent, Honda Motor perked 0.03 percent, Softbank Group rallied 2.75 percent, Mitsubishi UFJ Financial spiked 3.53 percent, Mizuho Financial soared 3.48 percent, Sumitomo Mitsui Financial surged 4.74 percent, Mitsubishi Electric jumped 1.92 percent, Sony Group improved 2.57 percent, Panasonic Holdings sank 0.66 percent and Hitachi increased 3.89 percent.

The lead from Wall Street suggests mild upside as the major averages opened mixed on Thursday and closed in the same fashion.

The Dow stumbled 316.38 points or 0.70 percent to finish at 44,693.91, while the NASDAQ gained 37.94 points or 0.18 percent to close at 21,057.96 and the S&P 500 rose 4.44 points or 0.07 percent to end at 6,363.35.

The strength on Wall Street came on optimism that the U.S. could sign up more deals with its remaining trading partners before President Donald Trump's Aug. 1 deadline.

As UK, China, Vietnam, and Indonesia have come to an agreement with the U.S. already, Canada, India, South Korea, and the EU are ramping up their efforts. U.S. Secretary of the Treasury Scott Bessent reportedly said that the talks were "going better than they had been," and that progress was being made.

In economic news, the Commerce Department said that new home sales in the U.S. rebounded less than expected in June. Also, the Labor Department said U.S. initial jobless claims unexpectedly fell last week.

Crude oil rose on Thursday after the U.S. Energy Information Administration said crude stockpiles declined more than expected last week. West Texas Intermediate crude for September was up $0.87 or 1.33 percent to $66.12 per barrel.

Closer to home, Japan will on Friday release July figures for Tokyo inflation later this morning. In June, both overall and core CPI were up 3.1 percent on year.

Japan also will see June numbers for producer prices and May results for its leading and coincident indexes. Producer prices are tipped to rise 3.2 percent on year, easing from 3.e percent in May. The leading index is expected to rise 1.1 percent on month after slumping 3.4 percent in April. The coincident is seen lower by 0.1 percent after adding 0.2 percent in the previous month.