NIKKEI 225 FALLS ON GROWTH CONCERNS; TECHS FOLLOW U.S. PEERS LOWER
Nikkei 225 futures are currently trading at 19640-higher by 0.30% as compared to the previous closing. However, the contract has been closing in the Negative territory since the last four trading sessions.
In the Cash Markets, the Nikkei 225 fell 2.26% to close at 19,561.96 on Friday. The benchmark dropped as much as 3.86% earlier in the session as investors digested bearish news since the start of the year.
The broader Topix slipped 1.53% to close at 1,471.16.
Japanese equities fell on Friday, buffeted on the first trading session of the year as Apple Inc’s earnings warning hit technology shares and signs of a slowdown in the U.S. and Chinese economies soured broader sentiment.
A bounce by Chinese equities helped the benchmark pare some losses, although it was not enough to lift Japanese shares out of the red.
Apple on Wednesday took the rare step of slashing its quarterly sales forecast, blaming slowing iPhone sales in China.
Japanese technology stocks tracked their U.S. peers lower. Index-members Murata Manufacturing Co plunged 9.8%, Nitto Denko Corp lost 4.3%, TDK Corporation dropped 4.4% and Alps Alpine fell 6.1%.
Companies that derive a large portion of their sales from China also fell on Friday. Industrial machinery maker Komatsu Ltd. slipped 3.2%, robot manufacturer Fanuc Ltd shed 4.4% and cosmetics company Shiseido Co. dropped 5.4%.
Exporters retreated following the yen’s rise over the past few days. Toyota Motor Corp inched down 0.9%, Bridgestone Corp declined 1.7% and Subaru fell 4.9%.
Index-members SoftBank Group fell 2.8% and Fast Retailing plunged 5.45%.
Of the Tokyo Stock Exchange’s 33 subsectors, 27 registered losses for the day.
On the technical front, the RSI is currently at 39.11% and suggests that the market can move in the upward direction. The current price is above the MA5 (19578). The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 19610 Take Profit At 19700 Stop Loss At 19570