Japanese Nikkei Slips Lower – Market Cautious Ahead of U.S Inflation Data
Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street’s extended rebound from last week’s steep fall, but investors remained cautious ahead of U.S. inflation data later in the week.
Australian stocks rose 0.60 percent and South Korea’s KOSPI climbed 1 percent. The Shanghai Composite Index was 0.96 percent higher, buoyed by global gains and suggestions of possible Chinese government support.
The Nikkei slipped lower by 0.75% on the day at session lows, and that’s keeping USD/JPY offered as the pair has now fallen to lows of 108.28.
That earlier dip in the S&P 500 futures isn’t providing too much comfort for Asian investors as suddenly we’re seeing gains evaporate on the day.
Still, caution lingered in the broader markets following the U.S.-led tumble in riskier assets last week and ahead of U.S. inflation data on Wednesday. A stronger-than-expected reading on price pressures could trigger a fresh wave of selling.
“It is hard at this stage to tell if the U.S. markets have bottomed out, considering that bets against the dollar still remain significant,” said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.
On the technical charts, Nikkei225 is trading in the negative zone. The market is trading below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is placed at 31.53 and the MACD is below the signal line. Negative bias is domination the market.
Sell stop at 21370, Take profit at 21070, Stop loss at 21420