The Japan stock market has fallen almost 1.8% over the past two sessions, with the Nikkei 225 sitting just below 40,300 points. Global markets are positive on optimism for an interest rate cut, following sharp gains in European and U.S. markets.

On Monday, the Nikkei closed lower, dropping 1.25% to finish at 40,290.70. The decline was led by financial, technology, and automobile stocks.

Wall Street saw a strong rally on Monday, with the Dow gaining 1.34%, NASDAQ rising 1.95%, and S&P 500 increasing by 1.47%. Traders are looking to buy stocks at reduced levels after recent sell-offs.

Concerns about economic impact of new tariffs, weak jobs data, and Amazon’s stock slump led to Friday’s sell-off. Optimism for a Fed rate cut next month is high, with a 91.9% chance of a quarter point cut in September.

Crude oil prices continued to decline on Monday due to oversupply concerns and fears of a global economic slowdown. West Texas Intermediate crude was down 1.57% to $66.27 per barrel.

The Bank of Japan will release the minutes from its June monetary policy meeting, where they decided to maintain a 0.5% benchmark interest rate and reduce bond purchases.

Read more at Nasdaq: Japan Stock Market May Stop The Bleeding On Tuesday