Nikkei May Crack Resistance At 38,000 Points

(RTTNews) - The Japanese stock market has moved higher in three straight sessions, rallying more than 860 points or 2.3 percent along the way. The Nikkei 225 now sits just beneath the 37,650-point plateau and it may extend its gains again on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over easing tariff concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The Nikkei finished modestly higher on Monday following gains from the financial shares and mixed performances from the technology stocks and automobile producers.

For the day, the index improved 140.93 points or 0.38 percent to finish at 37,644.26 after trading between 37,417.39 and 37,726.44.

Among the actives, Nissan Motor improved 0.70 percent, while Mazda Motor fell 0.33 percent, Toyota Motor accelerated 1.25 percent, Honda Motor added 0.40 percent, Softbank Group climbed 1.19 percent, Mitsubishi UFJ Financial strengthened 1.57 percent, Mizuho Financial collected 0.82 percent, Sumitomo Mitsui Financial advanced 0.88 percent, Mitsubishi Electric added 0.35 percent, Sony Group rose 0.25 percent, Panasonic Holdings tumbled 1.93 percent and Hitachi slumped 1.36 percent.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Monday and remained well in the green throughout the trading day.

The Dow surged 1,160.72 points or 2.81 percent to finish at 42,410.10, while the NASDAQ soared 779.43 points or 4.35 percent to close at 18,708.34 and the S&P 500 rallied 184.28 points or 3.26 percent to end at 5,844.19.

The rally on Wall Street came following news of a U.S.-China trade deal that drastically reduces the massive tariffs on each other's goods.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning May 14. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.

Crude oil showed another strong move to the upside on Monday, riding optimism about the outlook for demand after the U.S. and China reached their trade deal. West Texas Intermediate crude for June delivery jumped $0.93 or 1.5 percent to $61.95 a barrel.