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Brief: Nikkei 225 Recoups 1991 High as DAX Index, FTSE 100 Bounce Back

Nikkei 225 m
Nikkei 225

Nikkei 225 is surging today as investors cheer the latest developments on vaccine. The index is up by more than 2.65%, becoming the best-performing major index in Asia. Notably, of all the 25 companies that make the index, only 12 of them are in the red. The worst-performers are ANA Holdings, KDDI, and Unitika. On the other hand, the leaders are Tokyo Fudosan, Seiko Epson, and Marubeni. The index was not active yesterday since it was a bank holiday in Japan.

In Hong Kong, the Hang Seng index is up by about 0.12% as investors react to the latest Biden appointments. In a statement yesterday, the president-elect nominated Antony Blinken to become the next Secretary of State. He also appointed other senior officials that are seen to prefer global cooperation. According to South China Morning Post, China’s analysts believe that they can work well with these leaders.

In the United States, futures tied to the Nasdaq 100, Dow Jones, S&P 500, and Russel 2000 are adding to the yesterday’s gains. The four are up by 0.91%, 0.80%, 0.55%, and 1.18% because of the vaccine hopes, a near-concession by Donald Trump, and the strong economic numbers from the US. Yesterday, data showed that the services and manufacturing sectors were upbeat in November, despite the rising cases.

In Europe, DAX index and FTSE 100 futures are also rising as investors look ahead to a smoother relationship with the US. The two are up 0.50% and 0.30%, respectively. Investors are also reacting to news that EU’s chief negotiator, Michel Barnier has left quarantine, meaning that talks between the two sides will resume.

Meanwhile, the cryptocurrencies market, Bitcoin price is under pressure and is trading at $18,388. That is lower than yesterday’s high of $18,500. However, Ethereum and Ripple have continued their strong upward trend.

Nikkei 225 technical outlook

The Nikkei 225 is trading at ¥26,151, the highest level since April 1991. The index has jumped by more than 60% since March this year, becoming one of the best-performing global indices. Also, it remains above the short, medium, and long-term moving averages. The Relative Strength Index (RSI) is also at the overbought level. Therefore, the path of least resistance for the Nikkei 225 index is higher, with the next resistance at ¥26,300.

Nikkei 225 technical chart

Nikkei 225