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In the cash markets, the Nikkei 225 fell 1.1% to close at 22,687.65 points on Thursday. The index was pulled down by large-cap mobile phone companies after NTT Docomo said lower service fees will start hitting its earnings next year, stoking concerns about the profit outlook for the sector.
The benchmark fell 9.1% in October, its biggest monthly decline since June 2016.
The Communications sector plunged 8.3% and was the worst performer on the board.
Index-member, NTT Docomo announced that it would reduce service fees by 20-40% in the April-June quarter, 2019. The reduction in fees is expected to affect its earnings from the next fiscal year. Its shares nosedived over 15% to a two-year low on Thursday.
KDDI Corp. plummeted 16% to a four-year low, while SoftBank plunged 8.2%. Softbank fell as the news put pressure on the technology conglomerate before its planned initial public offering of its mobile-phone unit in December.
Japanese stocks were hit by a rout in global stocks last month as well as a sharp sell-off in U.S. tech shares which led the gains in Wall Street this year. Concerns about the impact from the Sino-U.S. trade war that is expected to curb global demand also hit investor sentiment.
Panasonic Corp fell 5.6% after its operating profit dipped 15% in the July-September quarter hit by rising costs at the battery plant it jointly runs with U.S. electric vehicle maker Tesla.
Yamaha Motor stumbled 15% after it cut its annual operating profit forecast hit by poor motorcycle sales in emerging markets.
Zozo tumbled 6% after the fashion company reported falling profits, production delays, and the phasing out of its Zozosuit.
The broader Topix inched 0.9% lower to end at 1,632.05
Other top losers in the Nikkei 225 include Tokyo Electron (fell 6.2%), NTN (Plunged 7.2%) and Yamato (fell 7.3%) on Thursday.
On the economic front, the Manufacturing PMI for October released earlier came in at 52.9. The PMI reading was below the market expectations of 53.1, the same reading as in September.
On the technical front, the RSI is currently at 39.49% and suggests that the market can move in the downward direction. The current price is below the MA20. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 21720, Take Profit At 21570 Stop Loss At 21800