Nikkei Trades Lower as Risk Return to Markets
The Japanese Nikkei 225 benchmark trades lower today at 21,176 amid geopolitical concerns and as traders await 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 also finished lower yesterday while the rest of Asian markets trading in negative territory with the Hang Seng giving up over 1.20 percent to 28,172. In macro news the Japan Corporate Service Price, year on year, came in at 0.8%, below analyst’s expectations of 1% for March.
On the technical side Nikkei 225 short term momentum turned bearish today as the Japanese benchmark currently trades below the 50 and 100 day moving averages. On the downside immediate support stands at the 21,000 the 20 day moving average while 20,575 will provide further support. On the upside first resistance stands at 21,398 the 50 day moving average while extra offers will emerge at 21,491 the high from Friday. 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.