Nikkei Trades Higher Ahead of G20 Summit
The Japanese Nikkei 225 benchmark trades higher today at 21,279 on improved sentiment as traders await a positive outcome from the G20 Summit in Osaka, Japan. President Trump and Chinese President Xi Jinping will meet on Saturday in the first meeting since trade talks stopped in May. US equities ended mixed yesterday while the rest of Asian markets trading in positive territory with the Hang Seng adding over 1.00 percent to 28,503 and the Shanghai Composite is 0.77 percent higher at 2,999. Earlier today we had the report for the Japan Foreign Investment in Japanese Stocks which dipped from previous ¥-95.4B to ¥-313.4B in June 21. The Japan Large Retailers’ Sales data came in at -0.5%, better than forecasts of -1.2% for May.
On the technical side Nikkei 225 looks neutral as the index is trapped between the 20 and 50 day moving average. On the downside immediate support stands at the 21,026 the 20 day moving average while 20,296 the low from June 4th will provide further support. On the upside first resistance stands at 21,377 the 50 day moving average while extra offers will emerge at 21,491 the high from June 21st. The Japanese economy, world’s third-largest economy is facing growing downward pressure as the U.S.-China trade war intensifies. The recent strength in Yen also creates problems to Japanese economy.