Asian markets are trading mostly higher on Monday after better than expected employment data from USA and Canada on Friday, and on optimism for a fast recovery of the global economy after the coronavirus lockdown.
The U.S. Nonfarm Payrolls rise by 2,5 million in May, beating the expectations of -8 million jobs loss. The unemployment rate dropped to 13.3% while the expectations were looking for an increase of up to 20%. The Average Hourly Earnings registered in at 6.7%, below the estimates of 8.5% while the Labor Force Participation Rate increase to 60.8% in May from 60.2%. The data lead a rally in Wall Street with Dow Jones adding 3.15% at 27.110, the S&P 500 finished 2.62% higher at 3.193, while Nasdaq was 2.06% higher at 9.814.
Economic data from China also support the positive tone, exports contracted in May at -3.3% but above the expectations of -7%, while China import came in at -16.7% sharper-than-expected (-9.7%).
OPEC+ countries agreed on n Friday to extend the crude oil production cuts for one more month until the end of July.
The Nikkei 225 finished 1.14% higher at 23,123. The Hang Seng Index is 0.10% lower at 24,749. The Shanghai Composite index is 0.20% higher at 2,936. The Singapore Straits Times index is 1.34% higher at 2,788.
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Nikkei 225 Hits The Highest Level Since February 25
Nikkei 225 index finished 1.37% higher at 23,178 as the bulls are in full control and the index now cruise on overbought levels according to RSI technical index. On the economic data, Japan Gross Domestic Product for the first quarter came in at -0.6% below the forecasts of -0.5%, while the yearly reading came in at -2.2% below the expectations of -2.1%. The Japan Bank Lending came in at 4.8%, topping the forecasts of 3.2% in May.
On the technical side, the initial resistance for the Nikkei 225 index stands at 23,178 the daily high. The next resistance for the Nikkei index stands at 23,549 the high from February 21. If the index breaks above 23,549, the next supply zone is at 23,824 the high from February 20.
On the flip side, immediate support stands at 23,028 today’s low. If the Nikkei 225 breaks below, then the next support will be met at 22,516 the low from Friday. In case the selling wave continues, the next support area stands at 22,121 the low from June 2.
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