Trade concerns and geopolitical hazards continue to weigh on markets, but Asian stocks are lifting on positive news from China. What is more? Gain insight into today’s 24 July Nikkei Index Fundamental Outlook.
24 July, GKFX – Equities in the Asian market session are on the rise for Tuesday, posting moderate gains despite global headwinds are US-China trade tensions, as well as a new wave of inflation fear beginning to shake out bond markets.
The US’ inflation readings, due later this week, are expected to top estimates, accelerating the expected pace of Federal Reserve rate hikes as the US central bank looks to curb growing inflation that threatens to break off the chain.
Japan’s Nikkei index is knocking into 22,500.00, a level that sees the leading Japanese bourse in the green for 12.7% for 2018.
Positive news from China
China is looking to adopt more vigorous fiscal policy, and is looking at potential tax cuts for Chinese businesses, helping to drive Asia markets higher for Tuesday, and Japanese equities are following suit, despite a flubbed Nikkei Manufacturing PMI early in the day that saw business conditions in Japan’s manufacturing sector decline from 53.0 to 51.6, while market were expecting a mild uptick to 53.2.
Nikkei Index Fundamental Highlights
Japan’s Nikkei 225 is up 0.50% on the day, with Tokyo’s Topix index clearing a similar 0.53%, with Australia’s ASX 200 also up 0.56% for Tuesday; the MSCI broad Asia-Pacific index is softly lower at -0.12% as emerging markets struggle, but China’s major bourses are seeing big gains for the day, with Hong Kong’s Hang Seng index up 1.50% for the day and Shanghai’s CSI 300 index in the green by 1.7%.
24 July Nikkei Index Fundamental Outlook
Japan’s leading equity index is bouncing from the week’s swing low at 22,340.00 as bulls look to work off last week’s declines from 22,950.00, a key barrier stopping the index from claiming the major 23,000.00 level.
Support at the last higher low on H4 candles sees 22,000.00 providing a floor underneath current action with a rising trendline from July’s early low of 21,470.00.
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