ASX 200, Hang Seng and Nikkei 225 Forecasts – Asian Markets Seeing Buyers on Dips

ASX 200 Technical Analysis

The ASX 200 continues to see a lot of sideways action, although we did fall early on Friday. The 9,000 Australian dollars level continues to be a significant barrier. If we can break above the 9,000 level, then it does open up the possibility of a move to 9,130.

Short-term pullbacks continue to see the 50-day EMA as support right along with the 8,750 level. The 200-day EMA sits just below there as well, so I think it is probably only a matter of time before short-term buyers continue to come in and pick up cheap contracts here in the ASX 200.

Hang Seng Technical Analysis

The Hang Seng has had an interesting session as we had been at massive highs, not all-time highs but a big swing high going back something like three and a half years. But there was a Panama court ruling for the Panama Canal; the Supreme Court ruled that CK Hutchison’s port concessions were unconstitutional, driving that stock down something to the effect of 5.5% during the day, which has weighed upon the index.

It is a market that is still very bullish, but with that sudden shock, you did see a little bit of selling pressure during the day. It still looks like a buy-on-the-dip opportunity.

Nikkei 225 Technical Analysis

The Nikkei 225 is likely to continue to be interesting for most traders as the 54,500 yen level continues to be a bit of a barrier. That being said, I think really what you have got here is a mix of massive gains right along with massive losses.

Fujitsu was up 5.8%, SoftBank up 4.3%, but Sony was down 2.1% and Tokyo Electric Power was down 1.8%. So, you can see just how mixed the index was. Analysts suggest the cooling CPI data in Japan will give Governor Ueda some breathing room when it comes to any delaying of interest rate hikes in the first part of the year, and I think that is starting to show itself here as well as a lot of indecision.

But if he does in fact wait with rate hikes, that could have traders looking to take advantage of that cheap interest rate level as well, although it is probably worth noting that the 10-year in Japan is at 2.24%, which is elevated but it is also stable.

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