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Nikkei decline on Global growth worries

FXStreet (Mumbai) - The Japanese equities index opened sharply weaker and trades lower, snapping two-days winning streak as growing worries over global economic outlook and weak Japanese data weighed on market sentiments.

The benchmark Nikkei 225 index trades down -1.15% or 199 points at 17172.50, compared to previous session’s close of 17371.58. A renewed strength in yen against the US dollar after Prime Minister’s elections victory continues to drag the index lower. The index breadth is negative with an advance decline ratio of 50:169.

Among the gainers, Kao Corp. rose almost 3%, Unitika moved up 1.61%. Taisei Corp. and Aozora Bank were up 0.8% to 1.55%. Mitsubishi electric, Yokogawa electric, Mitsui Chemicals Inc, JGC Corp and ITOCHU Corp were losing 4% to 5.15%.

Nikkei Technical Levels

The index has an immediate resistance stands at 17286.50 (Dec 11 High) above which gains could be extended to 17346.85 (Nov 27 High) levels. Meanwhile, support is seen at 17044.70 (200-day SMA) and from here to 16907.43 (Nov 17 Low) levels.

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