Nikkei Rises As Kuroda Re-nominated to Lead Bank Of Japan – Outlook Positive

Stocks in Japan, Australia, and New Zealand gained Friday, while a number of major markets were closed for the Lunar New Year holiday, as investor’s regained confidence in equities after sharp slides last week.

Japan’s Nikkei rose 1.18 percent, with investors relieved to see the government appoint Bank of Japan Governor Haruhiko Kuroda for another term, in a sign the central bank will be in no rush to dial back its massive stimulus program.

The markets that are open took their cues from improving investor sentiment this week and gains in global stocks overnight.

Japanese technology stocks tracked the gains of U.S. counterparts, including Apple, +3.36% overnight. Kyocera was higher 3.9% and Sony 6758, gained 3%.

Japan’s carmakers were also higher despite the stronger yen. Honda Motor 7267, up 1.9%, Toyota Motor 7203, added 1.2% and Nissan Motor 7201, gained 1.1%.

In addition to Kuroda’s re-nomination, the Japanese government also nominated Masazumi Wakatabe and Masayoshi Amamiya for deputy governor positions at the central bank.

On the technical charts, Nikkei225 is trading in the positive zone just above the 200 day EMA. The market is trading below the 20 day, 50 day and the 100 day moving averages. The RSI is at 41.48 and the MACD is ready to make a positive crossover above the signal line.

Trade suggestion:

Buy stop at 21795, Take profit at 21979, Stop loss at 21685

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