Tokyo stocks surged Wednesday, drawing support from a weaker yen and expectations that the U.S. Federal Reserve will try to clam market jitters over its monetary policy by signaling its readiness to keep the current quantitative credit-easing grip.
The 225-issue Nikkei Stock Average closed up 237.94 points, or 1.83 percent, from Tuesday at 13,245.22. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 20.17 points, or 1.86 percent, at 1,106.57.
Almost all 33 sectors gained, led by steel, sea transport and wholesale firms. Mining was the only decliner.
Central Huijin Investment, a Chinese state-owned investment company, has bought stakes in six of the country’s largest financial groups in a bid to deliver a confidence boost to the tumbling domestic stock market in a slowing economy with interbank liquidity problems.
But whether it will succeed is doubtful.
Nan Sheng, a China banking sector analyst with CCB International told beyondbrics that the Central Huijin’s purchase of shares is good for sentiment, but its impact on the market is likely to be small due to the effect of diminishing returns.
Huijin’s first shares purchases back in 2008 had a large effect, and even Hong-Kong-listed H-shares rose along with the tide on the mainland, he said. But now investors are used to these interventions and think there will be little long-term impact, especially when they take account of the uncertainty surrounding the macro-economy and the slowing down of banks’ new lending.
Central Huijin increased its stakes in China’s four biggest banks on June 13, the first trading day after China’s three days’ dragon boat holiday, according to the banks’ filings in Shanghai Stock Exchange on Monday. >> Read More
Tokyo stocks fell for the first time in three trading days Tuesday, with the Nikkei Stock Average sliding 25.84 points, or 0.20%, to end the day at 13,007.28.
Investors refrained from buying stocks aggressively ahead of the two-day meeting of the Federal Open Market Committee in the U.S., which will begin later in the evening. In the afternoon, market players became more cautious. When the benchmark index briefly slipped below 13,000, investors bought some blue chips on dips.
Tokyo stocks gained ground Monday with the Nikkei ending above the 13,000 line as buying was spurred by bargain-hunting and an easing yen.
The 225-issue Nikkei Stock Average closed up 346.60 points, or 2.73 percent, from Friday at 13,033.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 28.27 points, or 2.68 percent, at 1,084.72.
Almost all 33 sectors gained led by miscellaneous products, tire, and glass makers. Real estate developers and airlines were the only decliners.
Kuwait’s bourse rose on Sunday on what traders said was buying by government-linked funds ahead of a politically sensitive court ruling. After the close, the court dissolved parliament and called for new elections, bringing fresh uncertainty to the Gulf state.
Most other regional markets fell in heavy selling, dragged down by escalating geopolitical tensions surrounding Syria and the shaky global environment for emerging markets.
Kuwait’s measure climbed 0.3 percent, halting a two-session losing streak. The market is still up 34.1 percent year-to-date, in a rally driven mainly by retail investors, who have been encouraged by a government push on economic development and expected improvement in corporate earnings.
The Constitutional Court threw out opposition challenges to changes to the electoral system which had been decreed by the emir. It is not yet clear whether this will prompt a stronger campaign of opposition street protests, or whether the next parliament will be more or less willing to work with the cabinet to implement stalled economic projects. >> Read More
Last Close : 5804 level.
No need to Use Brain :5836————————–5855 are Hurdles !!
Real Strength & Firework if crosses and stays above 5855 level with volumes.Next Target :5911-5930 level.
Tomorrow if not crosses 5820 & stays below 5812 level…………..Then ??
Slide upto 5787–5779 is possible.
If Breaks 5779 level too and stays below for 20 minutes or more then ………..5754-5746 level.
Will Update More Tomorrow Morning to our Subscribers.
(But Unexpected Buying Money Minted by our Subscribers on Friday in Nifty Future ,Bank Nifty and Shorted Nifty Future 5700 put at 73 and u know it crashed to ?? )
Technically Yours/ASR TEAM/BARODA/INDIA
Above is Weekly Chart of BALTIC DRY INDEX ,This week up by 10.84%
Above 925 level if closes for 2 sessions will take to 1000-1025 !
Baltic Dry Index is moving up ,So What means for Global Economy…..Some Turnaround Indicator ?
We have shown versions of this chart before, but given the recent price action it is worthwhile to revisit. ThisGreat Graphic, constructed on Bloomberg, shows the dollar against the yen in white and the Nikkei in yellow. It shows them moving in lockstep.
Most recently the dollar-yen has been lagging a day or two behind the Nikkei. Despite the pre-weekend gains, it is not clear that the Nikkei has bottomed and some of the slide in dollar into the weekend, seems to have been spurred by the erosion of US shares and the decline in the Nikkei futures. The Nikkei has neared a 50% retracement of the gains seen since the Japanese election was announced in mid-Nov last year. The dollar has surrendered about 40% of its gains. The 50% retracement comes in near JPY91.50. This is a rather simplistic projection, but the point is the given current relationships, one cannot be sure the dollar bottoms against the yen until the Nikkei bottoms.
For the first time since April 2012, the broad European equity markets have dropped for 4 weeks in a row. The drop of almost 6% is the largest since June 2012 and brings European stocks to almost unchanged on the year. But while stocks have been battered this week (even with yesterday’s bounce), sovereign bonds are relatively calm still.
Worst 4-week run in 9 months…
but bonds have been relativley well behaved…
Tokyo stocks finished higher Friday, with the Nikkei index recouping part of its 6 percent dive the previous day, buoyed by the yen’s slide and rosy U.S. economic outlook.
The 225-issue Nikkei Stock Average closed up 241.14 points, or 1.94 percent, from Thursday at 12,686.52 after surging to as high as 12,900.65. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 12.28 points, or 1.18 percent, at 1,056.45.
Almost all 33 sectors gained led by real estate, warehouse and utilities shares. Securities, banking and insurance firms were the only decliners.
Hurdle at 12780——————–Crossover and stays above will take to 12999—13072 level !
Technically Yours/ASR TEAM/BARODA/INDIA