Nikkei 225 Slumps on Global Growth Slowdown

Nikkei index finished lower today after weak US manufacturing data reading which came to the lowest reading (47.8) in ten years. Traders now increase bets for an interest rate cut by Fed in the next meeting. Japan 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. The Hang Seng turn higher, adding 0.08 at 26.065 while Aussie stocks also finished lower the ASX 200, ended 2.20% lower at 6,493.

Nikkei 225 finished 2.01% lower at 21,341 dragged by Sumitomo -4.93%, Takara Holdings -4.63%, Isuzu -4.31% and Ricoh -4.05%. Nikkei is gaining 6.63% in 2019.

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Nikkei Support and Resistance Levels

The Nikkei despite the sharp loses today keeps the positive momentum, as the index holds above all major daily moving averages. On the downside immediate support stands at 21,277, today’s low and then at 21,215 the 100-day moving average. A break below that level might accelerate the selloff down to 20,800 the low from September 5th. On the upside resistance for the Nikkei 225 stands at 21,437 today’s high, a break above, 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.

In Asian forex markets USDJPY trading 0.04% higher at 107.21, the Aussie dollar trades 0,03% higher at 0.6708, while NZDUSD trades 0.01% lower at 0.6266 versus USD. Gold trades higher today at 1,497, while WTI crude oil is 0.23% higher at $52.77 per barrel.

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Nikkei 225 Slumps on Global Growth Slowdown
Nikkei 225 Slumps on Global Growth Slowdown

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