RTTNews - The Japanese stock market is trading in the red on Tuesday with participants indulging in some profit taking after recent rallies. With no prominent triggers to guide them, investors are seen treading a cautious route since trading commenced this morning.
While steel, non-ferrous metals and insurance stocks are struggling for support, machinery and some financial stocks are edging higher.
The benchmark index Nikkei opened down 0.42% at 9,824 and drifted down to 9,799 within the next few minutes, but has edged up subsequently on support at lower levels. Currently, the benchmark is trading at 9,850, down 15.33 points or 0.16% from its previous close.
The Nikkei had ended 97.62 points or 1% up at 9,866 on Monday, with exporters and automakers leading the gains.
Automobile and communications stocks are exhibiting a mixed trend. Construction, food and chemicals stocks are also trading mixed. Bank and pharma stocks are mostly trading lower.
Shares of Yoshinoya Holdings Co. moved up sharply in morning trades on the back of reports that the company plans to open more than 50 restaurants in China and other countries.
In another economic news, Japan's core machinery orders for April will likely rise 0.7% from March, according to the average estimate of 26 private research institutes. The government will release the official data on Wednesday. Should the figure match projections, it will be the first growth in two months. Core machinery orders, excluding those for ships and from electric power companies in light of their amplitude in volume, are considered a leading indicator of corporate investment trends over the coming six months or so.
The U.S. dollar traded at the lower 98-yen level early Tuesday in Tokyo, down slightly from its levels overnight in New York. Currently, the yen is trading at 98.35 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Singapore, Korea and Shanghai are currently trading higher. New Zealand and Taiwan are exhibiting weakness.
On Wall Street, stocks finished Monday's session little changed despite some spirited buying in the final hour on hopes of a near-term economic recovery.
