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12 Dec 2014
Nikkei ends the week lower ahead of Sunday’s elections
FXStreet (Mumbai) - The Japanese stocks rose today following modest gains in the US stocks and weakness in the Yen, although gains were not sufficient to push stocks higher on a weekly basis.
The Nikkei index ended 0.66% higher at 17,371.58 levels, compared to the previous session’s close of 17,257.40 levels. However, the gains were not sufficient to avoid a weekly loss of 3.06%. The markets took heart from the Yen’s fall against the US dollar, although gains were capped since investors remained cautious ahead of the house of representative election on Sunday.
Among stocks, General contractors Taisei, Kajima and Shimizu enjoyed handsome gains on expectations that the LDP will promote public works spending post victory in the election. The weaker yen spurred buying of automaker Toyota and camera maker Canon.
Meanwhile, falling crude prices punished the resource stocks like trading houses Mitsubishi and Mitsui as well as oil distributors JX Holdings and Cosmo Oil. Automaker Honda and electronics maker Sony were also downbeat.
Nikkei Technical Levels
The index has an immediate resistance located at 17,520.45 (Nov 14 high), above which gains could be extended to 18,030.50 (Dec 8 high). Meanwhile, support is seen at 17,127 (Nov 4 high) and 16,907.43 (Nov 17 low).
The Nikkei index ended 0.66% higher at 17,371.58 levels, compared to the previous session’s close of 17,257.40 levels. However, the gains were not sufficient to avoid a weekly loss of 3.06%. The markets took heart from the Yen’s fall against the US dollar, although gains were capped since investors remained cautious ahead of the house of representative election on Sunday.
Among stocks, General contractors Taisei, Kajima and Shimizu enjoyed handsome gains on expectations that the LDP will promote public works spending post victory in the election. The weaker yen spurred buying of automaker Toyota and camera maker Canon.
Meanwhile, falling crude prices punished the resource stocks like trading houses Mitsubishi and Mitsui as well as oil distributors JX Holdings and Cosmo Oil. Automaker Honda and electronics maker Sony were also downbeat.
Nikkei Technical Levels
The index has an immediate resistance located at 17,520.45 (Nov 14 high), above which gains could be extended to 18,030.50 (Dec 8 high). Meanwhile, support is seen at 17,127 (Nov 4 high) and 16,907.43 (Nov 17 low).