Nikkei Opened Negative
Japanese stocks in early trading on Wednesday (03/02) opened down, when it was observed plunged -631.99 points or -3.56 percent at 17118.69. A weaker Nikkei depressed weakening crude oil and the strengthening yen.
Crude oil prices fell at the close of trading on Wednesday morning (03/02), after data from the American Petroleum Institute showed 3.8 million increase in inventories.
The price of WTI crude oil futures for front-month contract had fallen at $ 29.63 a barrel, and after it was closed down at $ 29.88 a barrel, down 5.5 percent, or $ 1.74. While the price of Brent crude oil futures for April delivery fell $ 1.79, or 5.23 percent, to $ 32.43 a barrel, after touching a low $ 32.23, down 5.9 percent, in the trading session.
Weakening crude oil stocks to press this morning. Inpex fell 1.68 percent and Japan Petroleum fell 3.54 percent.
Dollar-yen pair is trading lower by 0.13 percent at 119.78; strengthening of the yen is a negative for stocks because it reduces the export of overseas income when converted into local currency. Shares of Japanese exporters mostly down as Toyota, Nissan and Honda fell between 4.35 percent to 4.87 percent.
Nintendo shares, trading higher by 1.02 percent. On Tuesday, after the market close, the video game maker released its fiscal third quarter earnings, with net profit for the period fell 36 percent year on year to 29.1 billion yen (US $ 241.3 million), down from 45.2 billion due to a lack of high profile game titles that affect sales.
Meanwhile, Nomura shares fell 10.75 percent after a report said the company’s net profit for the October-December quarter fell 49 percent at an annual pace to 35.4 billion yen.
As for the observed positive Nikkei index futures, fell sharply 700 points or -3.94% at 17.080, down compared to the previous closing at 17,780.
Technically,
Resistance: 17280 17350 17425 High / Low: 17460/17195
Support: 17200 17110 16 910 Running Price: 17225
Comment: For intraday trade today suggest Sell at the level of 17260 stop loss at the level of 17310 targets at the level of 17010.
USD/JPY Weakens
The movement of the currency market on Wednesday (3/2), natural monitored yen strengthening against the US dollar while the middle market attention centered on ADP nonfarm payrolls report and Non-Manufacturing PMI United tonight.
Ongoing trade in the Asian session, the pair USDJPY naturally weakened 0:06 monitored at the level of 119.88%. As against other major currencies, EURJPY pair observed to weaken 12:07% to 130.90 and GBPJPY weakened 12:08% to 172.73.
Demand looks natural decline in the greenback weakened against the yen after the pair USDJPY posted a decline for the second time since the beginning of this week. Experienced weakening greenback has been driven by market sentiment seen restraint in anticipation of Friday’s US nonfarm payrolls data is later. However, the decline was also caused by some fundamental reports the US economy at the beginning of this week, which showed the US economic recovery growth restricted.
On Monday, the Bureau of Economic Analyst said that US consumer spending is not naturally change or remain 0.0% in December and for the personal income has increased by 0.3% in December. Additionally, a report from the Institute for Supply Management also mentioned that the US Manufacturing PMI looks flat, which is a seasonally adjusted 48.2 in January from 48.2 in December.
While it entered the European and US trade tonight, the market will be faced with an ADP nonfarm payrolls report, followed by Non-Manufacturing PMI data AS. In line with the report, the USDJPY pair has a chance to experience price volatility shift back.
Technically,
Resistance: 120.10 120.50 120.98 High / Low: 119.91 / 119.66
Support: 118.40 119.00 119.50 Running Price: 119.73
Comment: For intraday trade today suggest at the level of 119.90 Sell stop loss at 120.15 the level of the target at the level of 119.00.
Gold Closed Almost Flat
Gold trim gains to close almost flat on the day yesterday as investors began to shift the focus of US jobs data this weekend that might provide clues about the Federal Reserve’s monetary policy. Previous bullion touched a 3-month highs, with global growth concerns and the sharp decline in oil prices pushed investors turned to safe-haven assets.
While some analysts said gold’s rise was also supported by reduced expectations of US rate hike for this year, which was previously predicted to occur as many as four times, thus triggering some short covering in the gold futures market. However, the fact that the Fed remains open chances for a rate hike in March is still restrict any rally in gold prices.
Increasing the appeal of gold is also reflected in the number of holdings in the SPDR Gold Trust, the largest exchange in the world based on gold, which rose to its highest level since 3 November, to 21.9 million ounces on Monday.
Technically,
Resistance: 1128.50 1130.20 1132.10 High / Low: 1128.80 / 1125.60
Support: 1124.00 1121.40 1118.80 Running Price: 1126.90
Comment: For intraday trade today suggest Sell at the level of 1129.40 stop loss at the level of 1131.90 target at the level of 1119.40.
