Japanese Nikkei Average Remains Above 9,800, Sets Sight on Next Target at 10,000
The Japanese Nikkei average has been experiencing a mix of trends in the market, with some investors buying stocks on corrective moves in the yen’s strength. However, this is not enough to keep pushing the market higher. Corporate earnings have been solid so far, but outlooks are looking weak. Other stock markets are also pausing, and at this point, investors find it hard to lift the Nikkei beyond 10,000 just because Japanese stocks have been lagging behind.
Market players believe that profit-taking and large-lot selling of futures are weighing on the market. The benchmark Nikkei has managed to stay above 9,800, where it had faced resistance. A decisive break above this level will likely open the way to a climb towards 10,000, traders say. The next target is then expected to be around its June high of 10,251.90.
Investors are cautious about investing in stocks due to the recent surge in valuations. Many investors are uneasy putting more money into stocks as they are unsure where to invest next. However, with proven portfolios and high-potential opportunities available, it is possible to explore various wealth-building strategies.
The broader Topix fell 0.4 percent to 847.79. So far this year, the Nikkei is down about 7 percent. By contrast, the Dow Jones industrial average has gained more than 7 percent, while the MSCI index of Asia Pacific stocks outside Japan has added about 12 percent during the same period.
Profit-Taking and Futures Selling Weigh on the Market
Market players are saying that profit-taking and large-lot selling of futures are weighing on the market. This is evident in the benchmark Nikkei’s performance, which has been experiencing a mix of trends. The Nikkei earlier climbed as high as 9,908.30, its highest since June 24. However, it later lost steam and was down 0.2 percent at 9,812.23 by midmorning.
The dollar touched a near 6-week high of 83.28 yen on trading platform EBS, boosted by a surge in U.S. Treasury yields. In early Asia trade, the greenback traded at 83.16 yen. Many Japanese companies have set their dollar/yen assumption rates for the fiscal year to March around 80-90 yen.
Exporter Shares Support the Market
Gains in exporter shares helped support the market. Canon Inc rose 0.8 percent to 3,985 yen and Tokyo Electron Ltd gained 0.6 percent to 5,100 yen. However, energy-linked shares slipped as U.S. crude futures fell after the dollar extended its recent gains.
Inpex Corp, Japan’s top oil explorer, declined 2.3 percent to 423,000 yen. This decline is due to the decrease in U.S. crude futures. The decline in Inpex Corp’s share price is a reflection of the overall trend in energy-linked shares.
Market Outlook and Next Steps
The market outlook is cautious, with investors finding it hard to lift the Nikkei beyond 10,000 just because Japanese stocks have been lagging behind. Corporate earnings have been solid so far, but outlooks are looking weak. Other stock markets are also pausing, which makes it challenging for the Nikkei to push through.
A decisive break above the current level of 9,800 will likely open the way to a climb towards 10,000, traders say. The next target is then expected to be around its June high of 10,251.90. However, investors need to be cautious and consider various wealth-building strategies before making any investment decisions.
Conclusion
The Japanese Nikkei average remains above 9,800, setting sight on the next target at 10,000. Market players believe that profit-taking and large-lot selling of futures are weighing on the market. However, gains in exporter shares helped support the market. Investors need to be cautious and consider various wealth-building strategies before making any investment decisions.
The market outlook is cautious, with investors finding it hard to lift the Nikkei beyond 10,000 just because Japanese stocks have been lagging behind. Corporate earnings have been solid so far, but outlooks are looking weak. Other stock markets are also pausing, which makes it challenging for the Nikkei to push through.
In conclusion, the market is experiencing a mix of trends, with some investors buying stocks on corrective moves in the yen’s strength. However, this is not enough to keep pushing the market higher. A decisive break above the current level of 9,800 will likely open the way to a climb towards 10,000, traders say.