Rebound Anticipated For Japan Stock Market

(RTTNews) - The Japanese stock market on Thursday ended the three-day winning streak in which it had surged more than 3,200 points or 6.2 percent to a fresh record closing high. The Nikkei 225 now sits just above the 54,110-point plateau although it may bounce higher again on Friday.

The global forecast for the Asian markets is cautiously optimistic, although any upside is likely to be capped by profit taking and slumping oil prices. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The Nikkei finished modestly lower on Thursday following mixed performances from the financial shares, technology stocks and automobile producers.

For the day, the index dropped 230.73 points or 0.42 percent to finish at 54,110.50 after trading between 53,709.87 and 54,153.61. Among the actives, Nissan Motor slumped 1.22 percent, while Mazda Motor rose 0.27 percent, Toyota Motor accelerated 2.54 percent, Honda Motor vaulted 1.23 percent, Softbank Group plunged 4.93 percent, Mitsubishi UFJ Financial rallied 2.93 percent, Mizuho Financial collected 0.59 percent, Sumitomo Mitsui Financial jumped 2.16 percent, Mitsubishi Electric tumbled 1.34 percent, Sony Group climbed 1.46 percent, Panasonic Holdings gained 0.71 percent and Hitachi sank 0.74 percent.

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

The Dow jumped 292.81 points or 0.60 percent to finish at 49,442.44, while the NASDAQ added 58.27 points or 0.25 percent to close at 23,530.02 and the S&P 500 rose 17.87 points or 0.26 percent to end at 6,944.47.

The early strength on Wall Street reflected a positive reaction to earnings news from Taiwan Semiconductor (TSM), with the chipmaker surging by 4.4 percent.

Taiwan Semiconductor jumped after reporting a sharp increase in fourth quarter profits and announced larger-than-expected capital spending plans, contributing to renewed confidence in the artificial intelligence trade.

Positive sentiment may also have been generated by a Labor Department report showing first-time claims for U.S. unemployment benefits unexpectedly dipped last week.

Crude oil prices plummeted on Thursday as the potential for a U.S.-Iran confrontation diminished for the time being. West Texas Intermediate crude for February delivery was down $2.83 or 4.56 percent at $59.19 per barrel.