Japan Housing Starts Boost Nikkei 225
Asian markets ended mixed today after news that China will not respond immediately to the latest US tariffs on Chinese goods and discussing to restart the negotiations. The Hang Seng trading 0.20 per cent lower at 25,650, the Singapore Straits Times index finished 0.46 per cent higher at 3,096 and the Shanghai composite ended 0,20 per cent lower at 2,885. Aussie stocks finished higher, the ASX ended 0.10% higher at 6,507.
Nikkei 225 finished 1.19% higher at 20,704 after the Japan Construction Orders (year over year) climbed from previous -4.2% to 26.9% in July, the Japan Housing Starts (year over year) came in at -4.1%, above forecasts of -5.4% for July. Nikkei 225 getting a boost from DIC +7.59, Olumpus +6.78, Rakuten +4.93%, Japan Steel +5.99%, IHI Corp +4.55% and Advantest +4.43%. On the other hand, Tokyo Dome -2.18%, Family Mart -1.33%, Suzuki Motor is -1.21%, and NEC Corp. -1.09%.
The Nikkei building on positive momentum for the short term as the index feeling safe above the strong support at 20,330. On the downside, immediate support stands at 20,633 today’s low and then at 20,200 the low from August 15th. A break below that level might accelerate the selloff below the 20,000 mark. On the upside resistance for the Nikkei 225 stands at 20,748 today’s high, a break may carry more bullish implications, perhaps setting the stage for a move up to 21,143 the 200-day moving average.
In Asian forex markets USDJPY trading 0.09% lower at 106.41, the Aussie dollar trades 0,21% lower against greenback at 0.6713, while Kiwi trades 0.22% lower at 0.6296 versus USD. Gold retreats from recent high and trades at 1,527, while crude oil is 0.63% lower at $56.35 per barrel.