FX.co ★ Japan Shares Expected To Open In The Green

The Japanese stock market broke its four-day losing streak on Monday, having previously declined over 1,160 points, equivalent to a 3 percent drop. The Nikkei 225 now sits just above the 39,160 mark and could experience further support as the market opens on Tuesday.

Globally, forecasts for Asian markets are optimistic, with expectations that technology stocks will lead the gains. While European markets remained steady, U.S. exchanges showed upward movement, likely encouraging a similar trend in Asian markets.

On Monday, the Nikkei 225 saw significant increases, driven by financial, technology, and automobile sectors. The index surged by 459.44 points, or 1.19 percent, closing at 39,161.34, with fluctuations between 38,847.13 and 39,210.17 throughout the session.

Key performers included Nissan Motor with a 1.58 percent rise, Mazda Motor advancing 2.15 percent, and Toyota Motor increasing by 2.36 percent. Honda Motor saw a substantial gain of 3.82 percent. Softbank Group grew by 2.01 percent, while Mitsubishi UFJ Financial rose 1.52 percent, and Mizuho Financial picked up 0.58 percent. Furthermore, Sumitomo Mitsui Financial climbed 1.18 percent, Mitsubishi Electric surged 2.35 percent, Sony Group inched up 0.52 percent, Panasonic Holdings improved by 1.95 percent, and Hitachi showed a modest rise of 0.16 percent.

In the United States, major averages began Monday on a flat note but gradually gained momentum, ultimately closing in positive territory. The Dow rose by 66.69 points or 0.16 percent to reach 42,906.95. The NASDAQ increased by 192.29 points, a 0.98 percent rise, closing at 19,764.88, while the S&P 600 climbed 43.22 points or 0.73 percent to end at 5,974.07.

The NASDAQ witnessed a notable rise, propelled by a rally in semiconductor stocks, with computer hardware stocks also displaying significant strength. Despite the gains, overall trading activity was muted as traders were hesitant to make substantial moves in anticipation of a quiet holiday week, with Christmas Day falling on Wednesday.

Economically, new orders for U.S. manufactured durable goods fell more than anticipated in November, as reported by the Commerce Department. Additionally, the Conference Board reported an unexpected decline in consumer confidence in December.

Oil futures declined on Monday amid concerns over possible oversupply, exacerbated by a stronger dollar pressuring prices. West Texas Intermediate Crude oil futures for February decreased by $0.26, or 0.3 percent, settling at $69.20 a barrel.

Domestically, the Bank of Japan is set to release the minutes from its monetary policy meeting held on October 30-31. In that meeting, the BoJ Policy Board opted to maintain the uncollateralized overnight call rate at approximately 0.25 percent, a peak not seen since late 2008. This follows the termination of the BoJ’s negative interest rate policy in March, with the benchmark rate being raised to its current level in July.