29 Jan 2015
Nikkei slides post FOMC, Hitachi Construction falls 11%
FXStreet (Mumbai) - The Japanese equities index reversed previous gains and opened with a negative gap of 125 points and remains in red tracking the weak cues overnight from Wall Street post FOMC statement and on the back of ongoing slump in oil prices.
The benchmark Nikkei 225 index fell -1.02% at 17611 levels, pulling away from fresh one-month highs reached at 17850 in the previous session. The index slip as the FOMC statement overnight revealed that the Fed refrained from changing course towards normalizing of policy in the US, despite the current low inflation readings. Investors were also digesting weak Japan retail sales data.
The index breadth traded negative with an advance-decline ratio of 86:131. Chugai Pharmaceuticals is the top gainer, up 5.25%. While Hitachi Construction led the index lower, falling -10.58% on disappointing corporate results.
Nikkei Technical Levels
The index has an immediate resistance stands at 17914 above which gains could be extended to 18030 levels. Meanwhile, support is seen at 17500 levels and from here to 17330 levels.
The benchmark Nikkei 225 index fell -1.02% at 17611 levels, pulling away from fresh one-month highs reached at 17850 in the previous session. The index slip as the FOMC statement overnight revealed that the Fed refrained from changing course towards normalizing of policy in the US, despite the current low inflation readings. Investors were also digesting weak Japan retail sales data.
The index breadth traded negative with an advance-decline ratio of 86:131. Chugai Pharmaceuticals is the top gainer, up 5.25%. While Hitachi Construction led the index lower, falling -10.58% on disappointing corporate results.
Nikkei Technical Levels
The index has an immediate resistance stands at 17914 above which gains could be extended to 18030 levels. Meanwhile, support is seen at 17500 levels and from here to 17330 levels.