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Nikkei 225 Ends Higher As BoJ Keeps Rates Unchanged
Nikkei 225 Ends Higher As BoJ Keeps Rates Unchanged

Nikkei 225 Ends Higher As BoJ Keeps Rates Unchanged

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Nikolas Papas Forex Analyst
    Summary:
  • Asian indices and Nikkei 225 finished higher today ahead of the Fed interest rates decision on Wednesday and U.S. trade negotiators will visit Shangai

Asian indices and Nikkei 225 finished higher today ahead of the Fed interest rates decision on Wednesday and U.S. trade negotiators will visit Shangai for their first face-to-face talk with Chinese officials since the G20 meeting. The Hang Seng finished 0.23 percent higher at 28,176, the Shanghai composite ended 0,39 percent higher to 2,952 and the Singapore Straits Times index finished 0.04 percent higher at 3,347 Aussie stocks finished to fresh all time high, ASX added 0.30% at 6,845.

Nikkei 225 finished 0.43% higher at 21,709 as BOJ left its interest rate policy unchanged, as widely expected, and maintained its guidance of extremely low rates at least through spring next year. The Bank of Japan added it would ease “without hesitation” if the economy growth loses momentum for achieving the BOJ’s 2% inflation target. Japanese government lowered the FY 2019 real GDP growth estimate from 1.3% to 0.9%. Earlier today, Japan Unemployment Rate came in at 2.3% below expectations of 2.4% in June.  Japan Industrial Production (MoM) came in at -3.6%, below expectations (-2%) in June, while Industrial Production (YoY) registered at -4.1%, below expectations of -1.6%.

The positive momentum for Nikkei 225 is still intact as the index holds above all the major daily averages. First support for the index stands at 21,590 the 20 day moving average, while another barrier is at 21,291 the 50 day moving average. On the upside resistance stands at 21,807 the high from July 25th.

In Asian forex markets USDJPY trading 0.21 percent lower at 108.63, the Aussie dollar trades 0,05% lower against greenback at 0.6898 a five week low, while Kiwi also trades lower at 0.6624 versus USD. Gold is adding 4 dollars at 1,425, while crude oil is 0.63 percent higher at $57.22 per barrel.Don’t miss a beat! Follow us on Twitter.