Oil Companies and Banks Lead the Way on Lower Japanese Stock Market

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The stock market in Japan started the new trading week slightly lower on Monday. The oil companies, in particular, were popular due to the further rise in oil prices. The banking sector also did a profitable business, hoping for a robust economic recovery from the corona crisis.

 

However, fears that higher oil prices and the sizeable US corona support package will boost inflation has put pressure on the broader market. The bailout package was approved by the Senate last weekend.

The Nikkei in Tokyo saw previous gains evaporate and eventually ended 0.4 percent in the minus at 28,743.25 points. Inpex, Japan’s largest oil producer, gained 4 percent after the price of a barrel of Brent oil rose above $ 70 for the first time since May 2019. The price hike came after a drone attack on Saudi oil installations by Houthi rebels.

Optimism about the economy and the production restrictions of the oil cartel OPEC is also driving oil prices. The Japanese banks Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group thickened up to 2.5 percent, and securities house Nomura climbed more than 3 percent.

The Chinese stock markets went down despite substantial growth in Chinese exports. The main index in Shanghai fell 1 percent in the meantime, and the Hang Seng index in Hong Kong lost 1.2 percent. Chinese exports grew by more than 60 percent in the first two months of this year. That was the most substantial growth in more than 20 years.

Imports also rose sharply due to the corona pandemic, which nearly brought the country’s economy to a standstill last year. The All Ordinaries in Sydney held their own with a plus of 0.4 percent thanks to price gains among Australian miners and banks.

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