China stocks sell-off keeps a lid on Nikkei

FXStreet (Mumbai) – The Japanese equities index witnessed a see-saw movement today, with the markets rallying to highs on upbeat Japanese CPI figures following a soft opening.

Subsequently most gains were erased as Chinese equities extended their sell-off following news that more brokers tightened margin trading requirements and PBOC drained money to reduce flush liquidity in the financial system.

Currently, the benchmark Nikkei 225 index trades 0.17% higher at 20,586, easing off fresh highs at 20626.22. The index also trimmed gains on the back of stronger yen which continues to hurt the export oriented stocks.

The index trades with a positive market breadth with the advance decline ratio of 111:103. Yahoo Japan is the top gainer, up nearly 9.80%, followed by Hokuetsu Kishu Paper up 4.92%. The top loser so far is Tosoh Corp, down -2.36%, followed by Sompo Japan which loses -2.19%.

Nikkei Technical Levels

The index has an immediate resistance stands at 20655.33. Meanwhile, support is seen at 20400 levels and from here to 20260 levels.

The Japanese equities index witnessed a see-saw movement today, with the markets rallying to highs on upbeat Japanese CPI figures following a soft opening. Subsequently most gains were erased as Chinese equities extended their sell-off following news that more brokers tightened margin trading requirements and PBOC drained money to reduce flush liquidity in the financial system.

(Market News Provided by FXstreet)