Asian equities started the week in a positive mood as optimism for a trade deal before the end of the year returns. The Nikkei 225 index finished 0.78% higher at 23,292 approaching the yearly highs after the Japan Coincident Index came in at 101.1 topping expectations of 101 in September while the Japan Leading Economic Index came in at 91.9, below the expectations of 92.2 for September. Nikkei supported by JFE Holdings Inc. +4.19%, Hitachi Construction Machinery Co. Ltd. +4.18%, Pacific Metals Co. Ltd. +4.16% and Toho Zinc Co. Ltd. +4.12%.
The Hang Seng index trades 1.44% higher at 26,981; the Shanghai Composite is 0.72% higher at 2,906. Australian stocks also ended the session higher; the ASX 200 finished 0.30% higher at 6,731.
The Nikkei 225 index return close to daily highs reversing two consecutive sessions of losses. Technically Nikkei bullish momentum is intact, and now the index needs to clear the resistance at 23,303 today’s top before an attempt up to 23,591 yearly high, next resistance stands at 24,310 the high from on October 1st, 2018.
On the other hand, immediate support stands at 23,255.8, today’s low, if the index slips below that level might drive prices down to 22,767 low from November 18th while a break below will open the way for a move down to the major support at 21,931 the 100-day moving average.