The Japanese Nikkei 225 closed up 1.27% on Thursday, extending a two-day rally, but is poised for a softer Friday open amid global concerns over bad loans in the auto industry. This follows a weak U.S. market session where major indices declined over 0.4%, driven by fears of auto loan defaults despite initial tech strength from Taiwan Semiconductor's robust AI chip demand. Concurrently, crude oil prices tumbled due to a larger-than-expected increase in U.S. inventories, signaling demand concerns.
The Japanese Nikkei 225 extended its rally for a second consecutive session, closing up 1.27% on Thursday at 48,277.74, driven by strong performances in financial shares and automobile producers, notably Softbank Group's 8.59% surge. Despite this domestic strength, the market faces a soft global forecast for Friday, with the Nikkei expected to follow a negative lead from Wall Street. U.S. major indices reversed earlier gains to close lower, with the Dow stumbling 0.65% and the S&P 500 sinking 0.63%. This downturn was primarily attributed to emerging concerns over bad loans within the auto industry, following the bankruptcies of First Brands and Tricolor Holdings, which is a significant headwind for global markets. Conversely, the U.S. tech sector initially showed strength, buoyed by Taiwan Semiconductor (TSM) reporting a larger-than-expected Q3 profit surge and raising its revenue forecast, driven by robust AI chip demand. However, broader economic signals were negative, with a substantial pullback in U.S. regional manufacturing activity in October and crude oil prices tumbling 1.66% due to higher-than-expected inventories, signaling demand concerns.
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moderately negative
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