Nikkei drops on stronger yen

FXStreet (Mumbai) – The benchmark Japanese Nikkei 225, opened the week on a bearish note with a negative gap of 174 points, tracking negative close on Wall Street on Friday partly driven by disappointing US homes sales data and weaker than expected China manufacturing PMI report.

The Nikkei trades -0.50% lower at 20443, recovering from a drop to 20324 session lows. The Japanese index keeps losses in sync with most of its other Asian counterparts as markets remain cautious ahead of Wednesday’s FOMC statement which may provide fresh cues on the timing of the Fed rate-hike. While a stronger yen also weighed on the exporters’ stock, dragging the index lower.

The index trades with a negative market breadth with the advance-decline ratio of 52:165. Casio computer is the top gainer, up 2% followed by Nissan motors. On the losing end, Unitika Ltd is losing -1.72% so far followed by Amada Holdings which is down -1.46%.

Nikkei Technical Levels

The index has an immediate resistance stands at 20500. Meanwhile, support is seen at 20324 levels and from here to 20225.

The benchmark Japanese Nikkei 225, opened the week on a bearish note with a negative gap of 174 points, tracking negative close on Wall Street on Friday partly driven by disappointing US homes sales data and weaker than expected China manufacturing PMI report.

(Market News Provided by FXstreet)