Nikkei 225 Ends Lower on Strong Yen

Summary:
• Nikkei 225 finished 1.11% lower at 20,455 after the Japan July preliminary machine tool orders came in at -33.0% (y/y) versus -37.9% previous reading

Nikkei 225 and Asian indices finished lower mirroring Wall Street indices as investors worries increase over the escalation in Hong Kong unrest and the US – China trade tensions. The USDCNH fixed at 7.0326 above the 7 critical mark. The Hang Seng finished 1.91 percent lower at 25,333, the Singapore Straits Times index finished 0.86 percent lower at 3,141 and the Shanghai composite ended 0,63 percent lower to 2,797. Aussie stocks also trading lower, the ASX is 0.20% lower at 6,577.

Nikkei 225 finished 1.11% lower at 20,455 after the Japan July preliminary machine tool orders came in at -33.0% (y/y) versus -37.9% previous reading. The stronger Yen pressures local stocks.

Nikkei 225 today canceled the recent rebound attempt from seven month lows and is looking for at 20,315 the lows from early June. A break below that level might trigger a selloff below the 20,000 mark. On the upside resistance for the Nikkei 225 stands at 20,930 the high from August 5^th and then at 21,249 the 50 day moving average.

In Asian forex markets USDJPY trading 0.01 percent higher at 105.30, the Aussie dollar trades 0,07% higher against greenback at 0.6752, while Kiwi trades lower at 0.6441 versus USD. Gold is making fresh highs at 1,523, while crude oil is 0.22% higher at $54.81 per barrel.