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Nikkei 225 futures are currently trading at 23185-higher by 0.13% as compared to the previous closing. The contract, however, closed in the negative territory in the last trading session.
In the Cash Markets, the Nikkei 225 lost 0.55% to close at 23,215.71 on Tuesday. It was the benchmark’s lowest closing level since 8th January.
The broad-market index fell today as the new coronavirus spread in China prompted authorities to take more strict steps to contain its outbreak.
The broader Topix declined 0.60% to close at 1,692.28 on Tuesday. It was its lowest closing level in two months.
Even firms that are expected to have strong growth prospects underperformed today.
The death toll from the virus has crossed 100 in China. The eastern province of Zhejiang has announced that companies were not allowed to resume their work until 9th February.
Shippers and steelmakers were among the worst performers, losing 1.3% and 2.4% respectively.
On the other hand, tourism-related stocks, which have been declining since the outbreak of coronavirus, steadied on Tuesday. The Topix air transport sub-index closed almost flat today.
Stocks of index component Nitto Denko dropped 1.63% as weak quarterly earnings overshadowed a stock buyback announcement.
Other top percentage losers in the index include- Yamaha Corp (fell 5.1%), Isetan Mitsukoshi Holdings Ltd (dropped 3.9%) and JFE Holdings (plunged 3.3%).
On the economic front, the Japanese Consumer Confidence for January is scheduled to be released early on Wednesday. The index reading is expected to rise to 40.8 from 39.1 in the previous month.
On the technical front, the RSI is currently at 36.74% and suggests that the market can move in the upward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 92% but suggests that the market can move in the upward direction.
Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy At 23150 Take Profit At 23290 Stop Loss At 23080