TOKYO (dpa-AFX) - The Japan stock market on Monday ended the two-day winning streak in which it had rallied more than 1,070 points or 2 percent. The Nikkei 225 now sits just beneath the 52,900-point plateau although it's expected to experience a mild rebound on Tuesday.
The global forecast for the Asian markets suggests mild upside ahead of the U.S. rate decision later this week. The European markets were mixed and little changed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.
The Nikkei finished sharply lower on Monday following heavy damage among the financials, technology stocks and automobile producers.
For the day, the index tumbled 961.62 points or 1.79 percent to finish at 52,885.25 after trading between 52,656.00 and 53,138.67.
Among the actives, Nissan Motor tanked 4.17 percent, while Mazda Motor stumbled 3.45 percent, Toyota Motor plunged 4.06 percent, Honda Motor crashed 4.42 percent, Softbank Group plummeted 4.89 percent, Mitsubishi UFJ Financial contracted 3.72 percent, Mizuho Financial tumbled 3.09 percent, Sumitomo Mitsui Financial retreated 2.78 percent, Mitsubishi Electric dropped 2.01 percent, Sony Group slumped 1.88 percent, Panasonic Holdings cratered 4.68 percent and Hitachi sank 3.62 percent.
The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained modestly in the green throughout the session.
The Dow jumped 313.69 points or 0.64 percent to finish at 49,412.40, while the NASDAQ climbed 100.11 points or 0.43 percent to end at 23,601.36 and the S&P 500 added 34.62 points or 0.50 percent to close at 6,950.23.
The strength on Wall Street comes ahead of the Federal Reserve's monetary policy announcement on Wednesday. While the Fed is widely expected to leave interest rates unchanged, traders will pay close attention to the accompanying statement for clues about the outlook for rates.
Traders are also keeping an eye on the latest geopolitical developments, with President Donald Trump threatening to impose a 100 percent tariff on goods from Canada over a potential free trade deal with China.
The U.S. government is also facing the possibility of another shutdown, as several Democratic senators have threatened to oppose a spending bill if it includes appropriations for the Department of Homeland Security. This comes after federal immigration agents shot and killed another U.S. citizen in Minneapolis over the weekend.
Crude oil prices slid on Monday following the resumption of production in Kazakhstan, although geopolitical tensions in the Middle East limited the decline. West Texas Intermediate crude for March delivery was down by $0.42 or 0.69 percent at $60.65 per barrel.
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