Asian markets trading mixed on Wednesday, as investors are trying to access the positive economic data from Europe yesterday and a rising number of coronavirus infections in some U.S. states. The stock rally that started after the March lows is impressive as investors are betting on a V-Shaped recovery, supported by better manufacturing data announced yesterday from U.S. and Europe.
Better Manufacturing Data Helps Sentiment
The U.S. Manufacturing PMI came in at 49.6 above the expectations of 48 in June. The Services PMI reported at 46.7 topping the forecasts of 46.5, while the PMI Composite rose to 46.8 from previous 37.
The Germany Markit Manufacturing PMI came in at 44.6, beating the expectations of 41.5 in June. The Services PMI came in at 45.8 also above the expectations of 42. The France manufacturing PMI also beat the consensus of 46 as it came in at 52.1. The U.K. manufacturing PMI came in at 50.1, and the services PMI rose to 47.0 from 29.0.
Coronavirus worries still a concern for investors. Arizona, California and Florida are experiencing a record number of new coronavirus cases, while in Latin America the death toll surpassed 100,000.
RBNZ kept interests rate and the Q.E. size unchanged as expected while noted that the central bank would need to do more to boost the economy, leaving the door open for more easing, and extra bond purchases.
Nikkei ended 0.07% lower at 22,534. The Hang Seng Index is 0.23% lower at 24,849. The Shanghai Composite index is 0.30% higher at 2,979, while the Singapore Straits Times index is 0.17% lower at 2,630.
Nikkei 225 ended 0.07% lower at 22,534 as the index continues the consolidation phase close to recent highs. On the economic data, the Japan Leading Economic Index came in at 77.7 above the expectations of 76.2 in April. The Coincident Index registered in at 80.1 below the estimates of 81.5.
On the technical side, initial support for Nikkei 225 stands at 22,479 today’s low. If the Nikkei index breaks below, then the next support will be met at 21,822 the 200-day moving average. In case the selling pressure in the index continues, the next support zone stands at 21,513 the low from June 15.
Looking higher, the first resistance for the Nikkei 225 index stands at 22,663 the daily top. The next resistance for the index stands at 22,938 the high from June 11. If the index continues higher than 22,938, the next supply zone is at 23,190 the high from June 10.