The Nikkei 225 index is rising today even after the relative weak economic numbers from Japan. The index is trading at ¥29,000, which is 2.67% above last week’s low of ¥28,293.
What happened: The Nikkei 225 is rising as part of the global stocks recovery. In Asia, the hang Seng has jumped by 0.90% while in the United States, the Nasdaq 100 and Dow Jones index futures have also rallied. This is partly because the Treasury yield market has relatively cooled-down.
Today, the Nikkei index is rising even after the Japanese statistics agency published the relatively weak economic numbers. The data revealed that the country’s economy expanded by 2.8% in Q4, lower than the median estimate of 3.0%. This growth led to an annualised increase of 11.7%, lower than the expected 12.7%. Meanwhile, data showed that the household spending declined at an annualised rate of 7.3% because of the state of emergency.
Nikkei index top movers: The top movers in the Nikkei 225 index are Sapporo Holdings, Mitsubishi Motors, Sumitomo Dainippon, and Kansai Electric Power. All these firms have risen by more than 6%. On the other hand, companies like Panasonic, Hitachi Zosen, CyberAgent, and, Rakuten are the worst movers in the index.
Nikkei 225 technical forecast
The four-hour chart shows that the Nikkei 225 index has bounced back from last week’s low of ¥28,293. The index has formed a dropping widening channel pattern. It is also slightly below the first support of the Andrews pitchfork tool. It is also at the same level as the 25-day and 15-day moving averages.
Most importantly, it has formed a small head and shoulders pattern, which hints at more weakness in the near term. If this happens, the next key level to watch is ¥28,293. However, a break above last week’s high of ¥29,450 will invalidate this trend.
Don’t miss a beat! Follow us on Telegram and Twitter.
Nikkei index chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.