NIKKEI BULLISH ON WEAKER YEN & POSITIVE DATA
Nikkei 225 extended its gains from the previous day to close at 22,664.69-higher by 1.3% on Tuesday. The percentage gain was the biggest since 14th August and the close was the highest since 4th September.
The broader Topix added 0.67% to close at 1,698.91.
Among the top gainers in the Nikkei 225, Familymart rose 3.7%, Kikkoman added 3.5% and Sumitomo Dainippon rose 5.8%. Among others, Toyota Motor Corp rose 1.6%, Panasonic gained 0.79% and Tokyo Electron was up 1.15%. Bridgestone Corp added 0.43%.
Technology stocks climbed as their U.S. counterparts bounced overnight following last week’s large losses, with the tech-heavy NASDAQ climbing 0.3%.
Renesas Electronics Corp, which announced on Tuesday it is buying U.S. peer Integrated Device Technology Inc. for about $6.7 billion, jumped 4.4 percent. With the deal, Renesas aims to boost its expertise in self-driving car technology.
On the economic front, official data on Tuesday showed that Japan Tertiary Industry Activity Index (MoM) rose by 0.1% which met market expectations. Economy Watchers Current index for August on Monday came in at 48.7 above the expectations of 47.2. In July, the reading of the index was 46.6.
The Dollar is currently trading at 111.540 Yen and is down against the dollar for the second consecutive day, lifting the exporters.
On the technical front, the RSI is currently at 55.53% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards. The %K has crossed the %D from below to the upside at 45.01 and suggests that the market may head upwards.
Overall Bias is Positive and trades can be initiated with tight Stop Loss and Take Profit targets to book profit for the short term.
Trade Suggestion-Limit Buy At 22530, Take Profit At 22700 Stop Loss At 22440