Market Brief: Nikkei 225 At Monthly Highs Asian Markets on Coronavirus Drug Hopes

Nikkei 225 m
Nikkei 225

Asian markets trading higher while Nikkei 225 climbed to monthly highs as the positive momentum in the region continues ahead of earnings season and the GDP figures from China with expectations for data showing a sharp recovery. Investors continue to ignore the rising number of new coronavirus cases in the USA amid excitement about Gilead’s Remdesivir drug. In Florida, for the first time, the new confirmed cases surpassed 15,000, forcing the state to impose new restrictions.

US warned US citizens travelling to China that they may face arbitrary arrest in the country as the relationships between the two countries continue to deteriorate.

Wall Street ended higher on Friday mostly driven by the technology sector. Dow Jones ended 1.44% higher at 26,075, while the S&P 500 was 1.05%. Nasdaq finished 0.66% higher at 10,617.

The Shanghai Composite index is 1.71% higher at 3,442. The Singapore Straits Times index is 0.41% lower at 2,641. Hang Seng is 0.69% higher at 25,901.

Crude oil price started the week lower. WTI crude oil futures are 0.85% lower at 40.20 while the Brent crude oil is 0.89% lower at 42.87 on news that oil-producing countries are looking to increase the production.

Nikkei 225 At Monthly Highs

Nikkei 225 ended 2.22% higher at 22,784 as the index attempt to break above the recent consolidation phase, on hopes of further stimulus amid the rising coronavirus cases in the country. On the economic data, the Japan Tertiary Industry Index came up to -2.1% in May from previous -6%. 

On the technical side, the initial resistance for the Nikkei 225 index stands at 22,784 the daily high. The next resistance for the Nikkei index stands at 22,943 the high from June 11. If the index continues higher than 22,943, the next supply zone is at 23,190 the top from June 10.  

On the other hand, first support for Nikkei 225 stands at 22,561 today’s low. If the index moves below, then the next support will be met at 22,278 the low from Friday’s trading session. In case the selling pressure in Nikkei continues, the next support area stands at 21,915 the 200-day moving average.   

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Nikkei 225 Daily Chart

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