Asian stocks started on Red the week as investors fear about the magnitude of the recession rise, as the lockdown will be extended until the end off April in most countries. The confirmed cases rising around the globe while the death toll surpassed 150,000. Hope is coming out of Italy as the number of deaths decreased for the second consecutive day. In Friday the Congress voted on the two trillion relief package that will support the heavy battered economy. Meanwhile, the central banks around the globe continue to cut rates. Bank of Canada and Reserve Bank of India lowered rates on Friday in an attempt to off-set the coronavirus impact.
Nikkei 225 ended 1.57% lower; the Singapore Straits Times finished 3.59% lower at 2438. The Hang Seng Index is 0.74% lower at 23310, and the Shanghai Composite ended 0.90% lower at 2747. Australia stocks managed to rebound from Friday’s heavy loses and closed up 7.00% at 5181.
Nikkei 225 managed to pair heavy morning loses and managed to return above the 19,000 mark. The Japanese government is ready to unveil a 16 trillion yen in additional bonds to enhance the stimulus package.
The Nikkei 225 retreated today from weekllly highs after the previous week rebound. On the technical side the Nikkei momentum is bearish and selling pressure might return as the damage in economy still needs to be assessed, On the downside, immediate support stands at 18,578 today’s low, if the index breaks below that level, the next support will be met at 18,464 the low from March 25th trading session.
On the contrary, resistance for Nikkei 225 will be met at 19,084 the daily high. The next resistance to the upside stands at 19400 the high from Friday’s session. In case of a bullish move the next supply zone is at 19554 the high from March 25th.