Nikkei Index Red, Sony Shares Surge
Japanese stocks moved lower at the beginning of Thursday’s session, with several blue chip stocks underperforming widely in the market, but shares of Sony Corp. soared because of their earnings reports.
After the rally of about 2% at the time of yesterday, the Nikkei index this morning is trading lower by 1% to 17515 at 8:45 pm as many traders took profit, coupled with the dollar weakened against the yen which is currently moving the range of 117.18, more low of 117.37 on Wednesday’s closing level.
Earnings into focus Asian equity markets today, stocks are recorded riveting performance as earnings include Sony, the value of its shares jumped 8.5% after they revised upwards their estimates of operating profit for the current fiscal year to demonstrate the existence of an advantage than a disadvantage in the previous projection.
Shares of Yahoo Japan Corp. also jumped behind earnings, with their shares rose 2%. While it shares the negative move at this time is among the stock of Hitachi Ltd. moving down more than 10% as sales outlook for those unable to cope with the decline in the company’s quarterly earnings. Similarly, Toyota Motor Corp., whose shares fell 1.5% over year increase in their earnings forecasts failed to support the stock.
In addition to earnings reports, overnight drop in oil prices also affect the decline in some stocks such as Inpex Corp. shares were down 3% and Showa Shell Sekiyu KK shares were down 2.1%, while the shares of Japan Airlines Co. and ANA Holdings Inc. shares each rose 1.1%.
Technically, the index on the trading session today, Thursday (05/02) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17 575 and 17 525 17650. If you fail, then the next index is expected to tend to reexamine the level of support that is 17500 and continued until the possibility of being in the 17450 area.
Yen Weakens Ahead of Observed Japan Data
Foreign exchange movement on Thursday (5/2), is experiencing a slight weakening of the yen against the US dollar ahead of the release of the Japanese economic reports this morning.
USDJPY rose of 0.02% at 117.28 level which has been observed to move the pair hit a daily low of 117.18 for the session and the highest level of 117.33 for the session daily.
In the movement for the last 4 hours chart, the yen looks got the urge to continue to naturally decline against the US dollar after the release of US economic reports last night that the results of the report of the American economy is able to provide a shift turmoil on the currency markets.
Meanwhile, the market’s attention this morning amid drawn to a Japanese economic reports scheduled to be released at 6:50 pm Jakarta time. Ahead of the report of foreign investment in the territory of Japan, a survey of economists have estimated that the amount of investment in this area will naturally rise, seasonally adjusted 505.1B yen in January.
In line with economists’ forecasts that claimed to be an increase in foreign investment into Japanese territory, it could support the return to a natural strengthening of the yen against the greenback. But on the contrary, if the foreign investment coming into Japan decreased, then the movement can naturally weaker yen against the US dollar.
Technically, the trading session today, Thursday (05/02), the dollar yen pair a chance to move in the negative trend.
The weakening of the yen mainly expected soon reexamine the minimum support at 116.80 and 116.10 maximum. Meanwhile, if the Yen was able to break and hold above 117.14, then the other alternative scenario that Yen chance to test resistance in 117.50 and 118.00 area.
Outlook On Greece Strengthening Gold
Gold climbed for a second day after the People’s Bank of China joined other central banks in the fight against slowing growth, and European policy makers to tighten the requirements for the Greek bailout, it has increased the demand for safe haven.
Gold in the morning moving up approximately 0.4% to $ 1.273 / onz, and is currently trading the range of $ 1,271.95 at 9:27 pm, extending a gain of 0.4% on Wednesday. Precious metals rebounded selaam last two days of decline of 1.8% despite the dollar index rose.
Gold this year rose by 7.4%, largely due to the Federal Reserve worried that might come back to refrain from Raise interest rates as countries with the world’s largest economy will not be protected from the global slowdown. PBOC said on Wednesday that they lowered the reserve ratio for the lending institutions, joined more than a dozen mitraknya denagn in easing this year. Gold also rallied after falling for two years because of fears that the Greek debt crisis triggered in the region may be out of the Euro zone debt renegotiations their midst.
The central bank seems to be competing in the monetary easing, which only give a little support to gold because the dollar also strengthened, “said Zhu Chunmimng, an analyst at Citic Futures in China.” With no signs of problems in Greece, it will help push the price but the market seem to be moving to be cautious before US employment report at the end of this week. ”
Technically, gold trading session today, Thursday (05/02) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1277.25 and re-test the maximum level of 1283.90. However, if the price of gold was unable to break and stays below 1272.20 then estimated the price of gold could potentially test the 1270.50 and 1265.10 Support.
