Nikkei may snap three-day losing streak as Wall Street rises and oil eases

what happened

According to RTTNews and dpa-AFX, Japan's Nikkei slipped 0.80% to finish at 62,189.65, its third straight session in the red and a loss of almost 1,450 points, or 2.2%. Financials and property stocks cushioned the decline, while technology, semiconductor, paper and metal shares weighed on the index.

In the US, the Dow rose 0.28%, the NASDAQ gained 0.82% and the S&P 500 added 0.70% on Monday. Buyers returned after the indexes had fallen to multi-month lows the previous week. Markets are also awaiting the Federal Reserve's decision on Wednesday, where rates are widely expected to stay unchanged, and the accompanying statement is seen as a key signal given that a quarter-point hike is still expected at the December meeting.

West Texas Intermediate for December delivery fell 1.27% to $102.00 a barrel after reports that a delegation from Qatar had visited Iran to discuss de-escalating regional conflicts.

why it matters

For Japanese equities, both the external backdrop and cheaper crude matter, since lower oil eases inflation pressure. If the Fed holds rates on Wednesday while keeping a hawkish tone on a December hike, that could move the dollar against the yen and shift risk appetite across Asia.

market impact

Japanese stocks: Wall Street gains and cheaper oil support Asian sentiment

tags

instruments