Asian indices ended higher ahead of the trade negotiations between officials from China and USA in Washington. Investors are cautious after the Chinese Government said it would retaliate after the US Government put Chinese technology companies on the blacklist. The Hang Seng index finished 0.33% lower at 25,766, the Shanghai Composite ended 0.76% higher at 2,947, while the Singapore Straits Times is 0.08% lower at 3,087. Aussie stocks finished flat the ASX 200, ended at 6,547.
Nikkei 225 managed to finish 0.45% higher at 21,552 despite the weak opening, but a latter report said that US is trying for a partial trade deal cancelling the tariffs that are scheuduled for next week. Nikkei 225 boosted by Aeon +6.81%, Kawasaki +4.70%, AGC +3.87%, Nippon SheetGlass+3.06% and Otsuka Holdings +2.99%. Yesterday reported the biggest slide in Japanese machinery orders the last five years increasing the concern that the world’s third-biggest economy may be heading for a recession.
The Nikkei index made an impressive intraday rebound, keeping the bullish momentum as the index holds above all major daily moving averages. On the downside, immediate support stands at 21,308, today’s low and then at 21,231 the 100-day moving average. A break below that level might open the way for a move down to 20,800 the low from September 5th. On the upside resistance for the Nikkei 225 stands at 21,601 today’s high, a break above, will set the stage for a move up to 21,930 the high from October 1st.