NIKKEI 225 RISES AS U.S.-CHINA TRADE TENSIONS EASE

Nikkei 225 futures are currently trading at 20520-lower by 0.58% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.

In the Cash Markets, the Nikkei 225 added 0.55% to close at 20,677.22 on Tuesday. The benchmark index ended in the positive territory for a third straight day on Tuesday.

The broad-market index rose today amid signs of an easing of trade tensions between China and the U.S. Hopes for fresh stimulus moves by major economies also boosted Japanese stocks today.

The broader Topix added 0.83% to close at 1,506.77 on Tuesday.

The U.S. on Monday extended a reprieve that allows Chinese tech giant Huawei to buy components from U.S. firms for another 90 days.

Stocks of iPhone maker Apple rose 1.9% on Monday. That lifted stocks of Apple suppliers today. TDK Corp. gained 0.71% while Taiyo Yuden advanced 1.58%

Tokyo-listed chipmaking-related companies also boosted after the U.S. Philadelphia semiconductor index gained 1.9% on Monday.

Chipmaking equipment supplier Tokyo Electron gained 1.37% and Semiconductor manufacturing equipment maker Screen Holdings rose 5.4%.

Real estate sector led the gains among the Tokyo market’s 33 sub-indexes. Mitsubishi Estate gained 1.65% and Mitsui Fudosan added 1.72%.

Hopes for additional stimulus lifted sentiment after reports that Germany is prepared to raise fiscal spending. The Chinese central banks also took steps to reduce borrowing costs by setting a new lending reference rate.

Defensive stocks also outperformed on Tuesday. KDDI Corp gained 0.68% and Nippon Telegraph and Telephone Corp rose 0.74%.

On the technical front, the RSI is currently at 41.29% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.

Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

Trade Suggestion- Limit Sell At 20570 Take Profit At 20420 Stop Loss At 20645

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