- Nikkei 225 climbs above 22,600.00 as Asia equities continue US session rally.
- Trade tensions have taken a backseat, but could return at any moment.
Asia equities are largely up for Wednesday, as trade fears have backed out of markets and US tech stocks lead the way for global indexes, with Japan’s Nikkei trading into 22,600.00.
The Pacific session saw equity indexes climb higher for the most part following a rally in US equities that saw tech stocks climb, dragging global sentiment higher and offsetting the recent trade tensions from the ongoing US-China, and now US-Canada-Mexico, trade disputes. However, as noted by ING chief economist for Asia pacific Robert Carnell, “the calm may not last for long”. Carnell clarified, “US trade figures for April are due out later today, and these may provide [US President] Trump with some further fuel for ranting tweets and unhelpful tariff threats.”
Australia’s ASK is up 0.40% for the day, with Shanghai’s Composite bucking the trend and sitting near -0.15%; the Hang Seng index and Japan’s Nikkei 225 are both up as well, claiming 0.45% apiece.
Nikkei 225 levels to watch
The Nikkei index is trading above 22,600.00 for the first time since January’s rapid decline that saw the index tumble into 21,910.00 after posting an all-time high of 23,044.00, and the current challenge for buyers will be to muscle the index up back into January’s highs to resume the crawl into newer record highs; on the downside, support is shaping up from the last swing low near the 50-day EMA at 22,410.00, with the June low sitting further beyond at 22,303.00.
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