Asian shares trade sharply higher as investors hope on Gilead coronavirus treatment and President Trump’s plans to reopen the economy gradually. Economic data around the globe continues to disappoint investors. China’s economy contracted by 9.8% in the first quarter below the forecasts of -9.9%, the yearly GDP reading contracted by 6.8% below the estimates of -6.5%. Retail spending fell by 15.8% below the expectations of -12.2%; the production slipped by 1.1% above the expectations of -7.7% while investment dropped 16.1% above the forecasts of -18%.
Nikkei 225 finished 3.15% higher at 19,897. The Singapore Straits Times is 0.58% higher at 2,627. The Shanghai Composite is 0.52% higher at 2834, while the Hang Seng Index is 1.52% higher at 24,376.
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Nikkei 225 Hits Fresh Monthly Highs
Nikkei 225 managed to rebound sharply on positive news from the coronavirus treatment front. Nikkei makes fresh monthly highs as the rebound from the March lows accelerate. Now the index has gained over 17% since the March 23 lows. The government yesterday announced the expansion of the state of emergency, while they are planning to start the cash payouts by May.
On the technical side, first resistance for the index stands at 19,922 the daily high. The next resistance for the Nikkei stands at 20,329 the 50-day moving average. If the index index moves higher, the next supply zone is at 21,052 the high from March 6.
On the flip side, first support seen at 19,554 today’s low, if the Nikkei 225 moves below, the next support will be met at 19,178 the low from yesterday. In case of further selling below that level the next support zone stands at 18,758 low from April 8.
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