Nikkei index finished higher today after government increased the sales tax by two percentage points to 10%. The hike has postponed before, but now PM Abe said that the tax needs to be raised to cover rising health costs and national debt. Chinese markets are closed for the week to mark 70 years since the founding of the People’s Republic of China. Aussie stocks finished higher after RBA cut interest rates by 25 bps; the ASX 200 ended 0.80% higher at 6,742.
Nikkei 225 finished 0.59% higher at 21,885 after the Japan Tankan Large Manufacturing Index came in at 5, beating forecasts of 2 in 3Q, 2019. Japan September vehicle sales came in at 12.8% while the previous reading was at 4.0%y/y.
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Nikkei Support nad Resistance Levels
The Nikkei rebounds today from 2-week lows keeping the positive momentum intact. On the upside resistance for the Nikkei 225 stands at 21,938 today’s high, a break above, perhaps will set the stage for a move up to 22,180 the high from May 7th, which will open the way for a move up to yearly highs at 22,360. On the downside immediate support stands at 21,812, today’s low and then at 21,211 the 100-day moving average. A break below that level might accelerate the selloff down to 21,177 and the 200-day moving average.
In Asian forex markets USDJPY trading 0.29% higher at 108.39, the Aussie dollar trades 0,713% lower at 0.6701, while NZDUSD trades 0.52% lower at 0.6229 versus USD. Gold trades lower today at 1,459, while WTI crude oil is 0.61% higher at $54.40 per barrel.Download our latest quarterly market outlook for our longer-term trade ideas.
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