The Nikkei 225 index is up by more than 0.30% as Asian stocks attempt to recover after yesterday’s sell-off. The index is also reacting to the relatively strong economic data from Japan. It is trading at ¥28,130, which is in the same range it has been in the past few days.
Nikkei index news: The Nikkei 225 index is rising after the relatively strong data by Japan. According to the Finance Ministry, the country exports grew by 38% year-on-year in April, beating the median estimate of 30.9%. This was a significant jump from the previous month’s 16.1%. In the same period, the country’s imports rose by 12.8% after rising by 5.8% in the previous month. As a result, the country recorded a trade surplus of more than ¥255 billion.
Further data showed that the country’s core machinery orders rose by 3.7% after falling by 8.5% in the previous month. On the other hand, it seems like foreigners are dumping their Japanese stocks. In total, they sold stocks worth more than ¥471 billion and bought bonds worth more than ¥600 billion.
The top performers in the Nikkei 225 index today were Taiyo Yuden, Credit Saison, Yamaha, and Alps Electric that soared by more than 3%. Automakers like Mazda, Isuzu, and Subaru also did well. On the other hand, companies like JFE Holdings, Sumitomo Metal Mining, ANA, and Japan Steel Works lagged.
Nikkei 225 technical outloook
The daily chart shows that the Nikkei 225 index has been in a tight range recently. The index has dropped by more than 8.5% from its YUTD high. It is also slightly below the important support level at ¥28,322. Also, the index has moved below the 25-day and 50-day exponential moving averages (EMA) while the Relative Strength Index (RSI) is at the neutral level of 50. It also seems to be forming a bearish flag pattern.
Therefore, the index may continue falling in the near term as bears target the next key support at ¥27,300. However, a break above the resistance at ¥28,322 will invalidate this prediction.
Nikkei index chart
Follow Crispus on Twitter.