Nikkei 225 finished higher but Asian markets trading mixed on Wednesday after yesterday’s losses on Wall Street as some reports cast doubts on the results from the clinical trials on Moderna’s coronavirus vaccine. Stocks around the globe paused today after the recent rally as investors bet on a V-shape recovery. The reopening of the economies has boosted investors sentiment while the optimism on coronavirus vaccine point to a faster recovery than expected in the world economy.
China’s PBoC kept the interest rate unchanged today at 3.85%. In Australia, the Westpac Leading Index dropped to -1.5% in April from previous -0.85%, while the Australia Retail Sales plunged to -17.9% from previous 8.5%.
Nikkei 225 ended 0.79% higher at 20,595. The Hang Seng Index is 0.15% lower at 24,352. The Shanghai Composite index is 0.43% lower at 2,886. The FTSE Straits Times index in Singapore is 0.81% lower at 2,560. In Australia, the ASX 200 managed to reverse heavy losses and now is 0.17% lower at 5,550.
Brent crude oil price stabilizes at recent highs as the physical demand for crude oil rises as more businesses reopen across the globe.
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Nikkei 225 At 10-Week Highs
Nikkei 225 index ended 0.79% higher at 20,595 after the Japan Machinery Orders registered in at -0.4%, topping the forecasts of -7.1% in March, the yearly Machinery Orders reading came in at -0.7% also above the forecasts of -9.5%. Tankan survey showed that the Japanese business confidence slumped to a decade low as the coronavirus battered economy entered a recession.
The Japan Gross Domestic Product for the first quarter came in at -0.9%, slightly better than the expectations of -1.2%, the annual GDP registered in at -3.4%. That was the second straight quarter for Japan marking the first recession since 2015.
On the technical side, initial resistance for the Nikkei 225 index stands at 20,684 the daily top. The next resistance for the Nikkei 225 index stands at 21,071 the high from March 6. If Nikkei 225 breaks above 21,071, the next supply zone is at 21,284 the 100-day moving average.
On the flip side, immediate support stands at 20,454 today’s low. If the Nikkei index breaks below, then the next support will be met at 20,004 the low from May 18 trading session. In case of more selling pressure in the index, the next support zone stands at 19,832 the May 15 lows.