Asian Shares Advance, Japan’s CPI Data In Focus – Outlook Positive

Asian stocks advanced in morning trading Friday to end the week on a positive note as the Dow and the S&P 500 reversed some of its midweek pullbacks, while comments from a Federal Reserve official eased concerns of speeding up rate hikes this year.

The Nikkei 225 edged up 0.72 percent, or 156.34 points, to close at 21,892.78. Oil-related stocks were higher as oil prices mostly held onto overnight gains. Inpex and JXTG Holdings added 2.12 percent and 3.34 percent, respectively, by the end of the session.

Automakers were also in positive territory, with Toyota climbing 0.66 percent. The technology sector was a mixed picture: Heavyweight SoftBank Group added 1.38 percent and Sony closed higher by 0.09 percent.

Japan’s CPI was in focus as the data showed inflation rose 0.9% in January from a year earlier, compared with a median market forecast of 0.8%. The data brought some uncertainty over the economic outlook as it showed the country’s inflation remains distant from the central bank’s 2% target. The yen was pressured by the stalling inflation as USD/JPY gained 0.10% to $106.86 by 10 am ET. The Nikkei was up 0.34%. Takata Corp received some focus as the airbag maker reached a $650 million deal to settle consumer protection claims in the States.

On the technical charts, Nikkei225 is trading in the positive zone, above the 9 day and 200 day moving averages. The market is trading below the 20 day, 50 day and the 100 day moving averages. The RSI is at 45.14 and the MACD is above the signal line.

Trade suggestion:

Buy stop at 21950, Take profit at 22040, Stop loss at 21815

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