Crude up, Japanese stocks fluctuate

The opening of important financial markets post the extended holiday weekend saw the Topix index of Japan swung between positive and negative territory. The Yen also stopped its four day roll, halting its positive movement post climbing up by 0.7 percent over previous four sessions. Oil, however, continued to enjoy its four month long winning streak. Crude went up for the seventh consecutive session prior to oil producing nations and OPEC begin to reduce the output.

Market swings

The see-saw of the Topix happened after the stock index suffered a decline lasting for three days. This has correlated with the data showing that consumer prices have dipped for the ninth consecutive month in November. Financial markets in Hong Kong, New Zealand and Australia were closed on December 27. Stock markets in Europe and the United States will restart trading activities from December 27.

Japanese company Toshiba Corp slid about 16 percent on the basis of reports that it will book losses of approximately 500 billion Yen or about $4.3 billion on its nuclear operations in the United States.

Ups and downs

As financial markets struggle to end in 2016, a volatile year, it is expected that trading will be weak. American equities are trading at record levels. Dollar is at its peak over a number of recent years. Equities in the United States stock market are hovering near record levels. Crude oil went north to 17 month highs as traders sped past negative events like the UK’s Brexit vote and Donald Trump winning the American presidency. According to Hideyuki Isheguro of Daiwa Securities Co. based in Tokyo, financial markets have priced in all expectations needed from Trump presidency. The market is going towards such a state which will gauge President Elect’s actual policies. The senior strategist also said there is also a shortage of market participants as all overseas markets are closed.

When it came to stocks, the benchmark Topix was down by 0.6 percent in 2016 and Nikkei 225 has gained 1.9 percent. Consumer prices in Japan slid in November. There was also a dip in household spending. These events highlighted the challenges Bank of Japan will encounter in the issue of tackling information. The Kospi index of South Korea added about 0.2 percent, while advancing for the consecutive third day. The FTSE China A50 futures added about 0.3 percent in its most recent trading. There was a drop of 0.4 percent in Shanghai Composite Index on December 26.

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