Mild Upside Seen For Japan Stock Market

(RTTNews) - The Japanese stock market has moved higher in three straight sessions, advancing more than 1,700 points or 3.9 percent in that span. The Nikkei 225 now sits just beneath the 43,650-point plateau and it may add to its winnings on Tuesday. The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were modestly higher and the Asian bourses are expected to follow that lead. The Nikkei finished sharply higher on Monday following gains from the financial shares, technology stocks and automobile producers. For the day, the index jumped 625.06 points or 1.45 percent to finish at 43,643.81 after trading between 43,343.58 and 43,838.60. Among the actives, Nissan Motor accelerated 2.38 percent, while Mazda Motor surged 7.15 percent, Toyota Motor rose 0.25 percent, Honda Motor perked 0.06 percent, Softbank Group jumped 2.09 percent, Mitsubishi UFJ Financial collected 0.75 percent, Mizuho Financial added 0.66 percent, Sumitomo Mitsui Financial was up 0.15 percent, Mitsubishi Electric gained 0.05 percent, Sony Group rallied 2.25 percent, Panasonic Holdings increased 0.13 percent and Hitachi advanced 0.90 percent. The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Monday but all finished with modest gains.

The Dow climbed 114.09 points or 0.25 percent to finish at 45,514.95, while the NASDAQ advanced98.31 points or 0.45 percent to close at 21,798.70 and the S&P 500 rose 13.65 points or 0.21 percent to end at 6,495.15.

The strength on Wall Street reflected optimism about the outlook for interest rates following last Friday's weaker-than-expected U.S. employment data.

Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group's FedWatch Tool is currently indicating a 90.2 percent chance the Fed will lower rates by a quarter point later this month.

Overall trading activity was subdued, however, as traders looked ahead to the release of consumer and producer price inflation later this week, which could also impact the outlook for rates.

Crude oil moved higher Monday on the threat of sanctions hanging over Russia on its oil exports, although the upside was limited by OPEC's decision Sunday to increase output. West Texas Intermediate crude for October delivery was up $0.53 or 0.86 percent at $62.40 per barrel. Closer to home, Japan will release August figures for M2 money stock later this morning, with forecasts suggesting an increase of 1.1 percent on year - up from 1.0 percent in July.