Nikkei Opens Positive
Japanese stocks in early trading on Wednesday (27/01) opened the rebound, observed rose 507.58 points, or 3.04 percent at 17,216.48. Strengthening Nikkei gains pushed Wall Street and expectations ahead of the meeting of the Fed and BOJ.
Wall Street closed higher at the close of trading on Wednesday morning (27/01), helped by rising oil prices and some positive corporate earnings reports, ahead of the Fed meeting statement on Wednesday. The Dow Jones Industrial Average closed up 282.01 points, or 1.78 percent, at 16,167.23. The S & P 500 closed up 26.55 points, or 1.41 percent, at 1,903.63. The Nasdaq index closed up 49.18 points, or 1.09 percent, at 4,567.67.
Meanwhile, investors await the outcome of the first meeting of the Fed since the financial crisis began this year and Friday from BOJ policy decisions.
At the news of stock trading, gains among Asian suppliers for the Cupertino-based iPhone maker is weaker than the broader market, making stock parts maker Murata Manufacturing Co. rose 0.7 percent, while shares of Minebea Co. rose 1.8 percent.
Suzuki Motor Corp. shares jumped as much as 16 percent after the Nikkei newspaper reported Toyota Motor Corp. may be parallel to the car to better compete in emerging markets, including India. Toyota and Suzuki both denied they were in talks. Shares of Toyota rose 3.5 percent.
SoftBank Group Corp shares jumped 7.4 percent after its US subsidiary Sprint Corp. posted a smaller quarterly loss than expected and rising cash reserves, providing relief to investors and making stock soared 19 percent in US trading.
Shares of Sumitomo Mitsui Financial Group Inc. rose 4.9 percent after an unexpected rise in quarterly profit as gains from the sale of shareholdings and a lower cost of debt from loans and bonds decline in trading revenue.
Apple supplier companies tend to be in focus after Apple reported quarterly earnings that beat analyst estimates, but revenue came in below expectations, and sales of the iPhone. Among Apple suppliers listed in Tokyo, Japan Display rose 2.92 percent and Asahi Glass rose 1.87 percent.
As for Nikkei futures negative tracked, significantly increased 510 points or 3.06% at 17.170, up compared to the previous closing at 16.660.
Technically,
Resistance: 17150 17230 17300 High / Low: 17085/16985
Support: 17050 16980 16 880 Running Price: 17075
Comment: To intraday trade today suggest Buy 17000 at the level of the stop and reversal when a break below 16940 level targets at the level of 17250 and 16710 at level reversal targets.
Yen Rate Stalled
Currency safe-haven Yen and Euro lower yielding forced to stop the rally on the day yesterday, as the recovery in the stock market and oil prices. Which give some impetus to the oil-related currencies such as the Aussie and Loonie.
Both Yen and the Euro tends to move positively in the midst of financial market tensions, following a current account surplus in Japan and the Euro zone.
While the dollar index is relatively flat as investors cautious ahead of a two-day policy meeting of the Federal Reserve that begins Tuesday. Investors will try to look for clues whether the global market turmoil, the fall in oil prices and growing fears of a slowdown in China will affect the commitment of the central bank interest rate hike in the US this year.
Technically,
Resistance: 118.50 119.00 119.40 High / Low: 118.44 / 118.26
Support: 118.00 117.60 116.80 Running Price: 118.29
Comment: To intraday trade today suggest at level 118.35 Sell 118.60 stop loss at the level of the target at the level of 117.40.
Gold Ended With A Gain
Gold prices ended the trading session in the US with the highest rise and accounted for nearly 3 months. More safe-haven demand and technical buying has supported the bullish short term.
Other key outside markets is the condition of crude oil rebounded and the US dollar index is weaker.
Most Asian markets moved lower on Tuesday, led by a decline in the Chinese stock exchange. Shanghai stock index fell more than 6% on Tuesday and this time dropped 22% so far this year. Concerns falling value of the Chinese yuan and the panic sell-off in Chinese equities, in turn led to strong selling pressure in Asian equity markets. However, US stock indexes recorded solid gains in trading on Tuesday.
Fed meeting starts on Tuesday and ends today with the statement. It is estimated that there is no change to interest rates at the meeting, but the statement issued, will be a major focus. Many market observers agree that the world economy and financial markets become less stable since the last FOMC meeting in mid-December. Currently there is a growing consensus, the Fed may not be able to raise interest rates in the near future and this is also an element bullish for the precious metals market.
US economic data released on Tuesday, including a house price index S & P / Case-Shiller home price index monthly consumer confidence index and the Richmond Fed business survey. However, none of the data had devoted a great impact to the market.
Technically,
Resistance: 1122.10 1124.60 1126.40 High / Low: 1120.80 / 1118.50
Support: 1118.70 1114.00 1112.40 Running Price: 1120.40
Comment: To intraday trade today suggest Buy at level 1115.40 1113.00 stop loss at the level of the target at the level of 1125.40.
