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Nikkei 225 futures are currently trading at 17510-lower by 7.66% as compared to the previous closing. The contract closed in the negative territory in the last trading session also.
In the Cash Markets, the Nikkei 225 fell 4.41% to close at 18,559.63 on Thursday. It was its lowest closing level since April 2017. The Japanese index’s drop was the second-biggest one-day fall in 15 months. The Nikkei 225 is now down 23% from its 17th January peak.
The index fell today after the US President announced a month-long ban on European travelers to the United States following a WHO declaration that the China-linked virus outbreak is now a pandemic.
The Nikkei’s volatility index today rose to its highest level since March 2011.
The index fell below the estimated average cost of the Japanese central bank’s share purchases, increasing concerns about the BoJ’s credibility and the sustainability of its hyper-easy monetary policy.
The WHO described the new coronavirus as a pandemic for the first time on Wednesday.
The US President on Wednesday announced a ban on travelers to the US from Europe except for the UK for the next 30 days starting on Friday.
The broader Topix plunged 4.13% to close at 1,327.88 on Thursday. It was its lowest closing level since November 2016.
All of the 33 sector sub-indices on the Tokyo Stock Exchange ended in negative territory on Thursday.
Top losers in the index include- Kawasaki Kisen Kaisha Ltd (fell 12.3%), Ricoh Co Ltd (declined 10.4%) and Mitsui E&S Holdings Co Ltd (dropped 10.0%) on Thursday.
On the economic front, the Japanese PPI (MoM) for February released earlier today came in at -0.4%. The PPI change was below the consensus estimates of a fall of 0.3%.
Official data released earlier today showed that Foreign Bond Investment rose by 4,240.3 billion yen in the week ending 7th March. Bond investments by Japanese abroad decreased by 489.7 billion yen in the previous week.
On the technical front, the RSI is currently at 14.67% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 18% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell At 17520 Take Profit At 17370 Stop Loss At 17600