NIKKEI ROSE AFTER NAFTA TRADE DEAL
Nikkei 225 inched up 0.06% on Tuesday to close at 22813.47its highest close since June 15.The index also breached the level of 23000 on Tuesday. The country’s shipping sector up by 2.3 percent for the day.
The broader Topix gained 0.2 percent on Tuesday to 1,731.63.
Japanese top three automakers stocks, which have plants in Mexico, rose. Toyota Motor Co advanced 0.9 percent, Nissan Motor Co climbed 1.3 percent and Honda Motor Co gained 1.3 percent.
According to market sources Toyota group of companies recently announced that they would form a joint venture to develop software that manages brakes, steering and other components for automated driving.
Official data released on Monday showed that Bank of Japan Core CPI (YoY) is 0.5% better than expected value of 0.3%.The previous period Core CPI was 0.4%.
On the technical front, the RSI is currently at 63.17% and suggests that the market can continue trading sideways. The MACD has also generated a buy signal as the fast line is above the slow line and both are above zero. The current price is above the MA5. So, overall the market setup seems to be mixed to positive.
Trade Suggestion-Limit Buy At: 22780, Take Profit At: 22880 Stop Loss At: 22730