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16 Dec 2014
Nikkei plunges 2%, sell-off continues
FXStreet (Mumbai) - The Japanese equities index opened sharply lower with a negative gap of 270 points tracking overnight broad based sell-off across equities and commodities and a stronger yen.
The benchmark Nikkei 225 index trades down 1.81% or 340 points at 16789.50, compared to previous session’s close of 17099.40. A renewed strength in yen against the US dollar after growing concerns over heath of global economy fuelled risk-off mood boosting yen’s demand as a safe haven alternative. The index breadth is negative with an advance decline ratio of 6:219.
Among the major gainers, Fujikura Ltd rose 7.19% and Central Japan Railway Co. gained 1.90%. While, Aeon Co., Yokogawa Electric, Chiyoda Corp., Mitsumi Electric, Suzuki Motor, Isuzu Motors, Mazda Motor, Shionogi & Co., JGC Corp., Ebara Corp. and Nippon Light Metal Holdings Co Ltd lost 3 to 6 percent.
Nikkei Technical Levels
The index has an immediate resistance stands at 17089.40 (200-day SMA) above which gains could be extended to 17286.50 (Dec 11 High) levels. Meanwhile, support is seen at 16713.37 (Nov 10 Low) and from here to 16600 levels.
The benchmark Nikkei 225 index trades down 1.81% or 340 points at 16789.50, compared to previous session’s close of 17099.40. A renewed strength in yen against the US dollar after growing concerns over heath of global economy fuelled risk-off mood boosting yen’s demand as a safe haven alternative. The index breadth is negative with an advance decline ratio of 6:219.
Among the major gainers, Fujikura Ltd rose 7.19% and Central Japan Railway Co. gained 1.90%. While, Aeon Co., Yokogawa Electric, Chiyoda Corp., Mitsumi Electric, Suzuki Motor, Isuzu Motors, Mazda Motor, Shionogi & Co., JGC Corp., Ebara Corp. and Nippon Light Metal Holdings Co Ltd lost 3 to 6 percent.
Nikkei Technical Levels
The index has an immediate resistance stands at 17089.40 (200-day SMA) above which gains could be extended to 17286.50 (Dec 11 High) levels. Meanwhile, support is seen at 16713.37 (Nov 10 Low) and from here to 16600 levels.