Asia stocks slip, Nikkei 225 back into ¥22,400

Asian stocks tripped over the US' Iran accord pullout but recovered quickly.
Japan's Nikkei index is the loser of the bunch for now, struggling to pare off the day's early losses.

Joshua Gibson FXStreet

Asia equities started Wednesday on a rough note, but most indexes have managed to recover, except for Japan's Nikkei 225, which is still down 0.40% on the day.

Equity indexes across Asia knocked lower to kick the day off following US President Trump's announcement that he is pulling the plug on the US' involvement in the Iran nuclear pact. Sanctions against Iran that were imposed against Iran years ago will be coming back into effect over the next 180 days, and stocks in the Asia-Pacific region stooped on reaction to the news, but markets have since stabilized.

The Shanghai Composite is holding steady, up about 0.06% on the day, while Hong Kong's Hang Seng is up 0.40% against the Nikkei's 0.40% decline in trading.

Nikkei 225 levels to watch

May is shaping up to be a capped-off month for the equity index, with the Nikkei beginning to show some technical weakness at the month's high of 22,580.00. the 50-day EMA sits nearby, providing support from 22,035.00 while the 200-day SMA is holding at 21,670.00.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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