Japanese Market Recovers After Weak Start – Markets Insider

(RTTNews) – The Japanese stock market recovered after a weak start and is modestly higher on Wednesday, as data showed that Japan’s core machine orders rose more than expected in August.

In late-morning trades, the benchmark Nikkei 225 Index is adding 33.93 points or 0.16 percent to 20,857.44, after touching a low of 20,788.12 in early trades.

The major exporters are mostly higher despite a stronger yen. Panasonic is rising almost 1 percent, Canon is advancing 0.5 percent and Mitsubishi Electric is adding 0.1 percent, while Sony is declining almost 2 percent.

Among automakers, Toyota is losing 0.6 percent and Honda is edging down 0.1 percent. In the banking sector, Mitsubishi UFJ Financial is adding 0.4 percent and Sumitomo Mitsui Financial is rising 0.3 percent.

Shares of Kobe Steel are losing almost 16 percent, extending losses from the previous session after the company admitted to falsifying data about the quality of its products.

In the oil space, Inpex is adding 0.3 percent and Japan Petroleum Exploration is rising 0.4 percent after crude oil prices surged nearly 3 percent overnight.

Among the best performers, Tokai Carbon is rising almost 8 percent, Fuji Electric is advancing almost 3 percent and Sumitomo Metal Mining is up more than 2 percent.

On the flip side, Takashimaya Co. is lower by more than 4 percent and Tosoh Co. is down more than 3 percent.

In economic news, the Cabinet Office said that core machine orders in Japan jumped a seasonally adjusted 3.4 percent on month in August, coming in at 882.4 billion yen. That beat forecasts for an increase of 1.0 percent following the 8.0 percent spike in July.

Japan will also see preliminary September numbers for machine tool orders today.

In the currency market, the U.S. dollar is trading in the lower 112 yen-range on Wednesday.

On Wall Street, stocks closed modestly higher on Tuesday, reflecting a recent upward momentum. However, a lack of major U.S. economic news led traders to be reluctant to make more significant moves.

The Dow climbed 69.61 points or 0.3 percent to 22,830.68, the Nasdaq edged up 7.52 points or 0.1 percent to 6,587.25 and the S&P 500 rose 5.91 points or 0.2 percent to 2,550.64.

The major European markets turned in another mixed performance on Tuesday. While the U.K.’s FTSE 100 Index rose by 0.4 percent, the French CAC 40 Index closed just below the unchanged line and the German DAX Index dipped by 0.2 percent.

Crude oil prices rose nearly 3 percent Tuesday, hitting its highest level in almost two weeks. WTI crude for November surged $1.34 or 2.7 percent to $50.92 on the New York Mercantile Exchange.

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