Nikkei 225, Hang Seng, Shanghai Composite all higher as equities continue bull run
- Asia equities are continuing the bull run started in Tuesday's America session.
- Japan getting a lift as trade data comes in under expectations but still positive.
The Japanese Nikkei 225 equities index is climbing into 22,120.00 as equities in the Asia markets go risk-on following the American equities markets climbing in Tuesday's action, with the S&P climbing over 1 percent to close over 2,700.00 and the Nasdaq lifting by almost 1.75 percent for the day.
Japanese exports expand for 16th straight month
The Nikkei has climbed over last month's high of 22,101.00 to trade into February's declines, and the Japanese index is up around 1.2 percent in early trading, with the Hong Kong Hang Seng Index and the Shanghai Composite Index also up about 1.3 and 0.85 percent respectively. China equities are also likely to open on the high side after the PBOC cut reserve ratio requirements for banks. Further adding to the bullish momentum in Japan is trade figures that showed merchandise exports increasing for the 16th straight month, though the figure came in below expectations.
Nikkei 225 Levels to watch
With the Japanese index back into highs, immediate resistance will be set at February's highs of 22,510.00 with further resistance at the 50.0 Fibo level of early 2018's decline at 22,340.00, while support will be seen from the 200-day SMA at 21,500.00 and further support from April's lows near the major 21,000.00 level.
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.
