Hang Seng Index, ASX 200, Nikkei 225 Forecast: Stocks Climb as Rate Hike Fears Wane

Key Insights

• Asian stocks hit a two-month high, with U.S. rate hike concerns easing.
• Nikkei retracts from peak but maintains a strong yearly gain.
• China’s CSI300 and Hang Seng Index advance on global cues.
• Nvidia’s earnings, Fed minutes to set market direction.
• Inflation data, policy shifts may influence Asian market trends.

Quick Fundamental Outlook

Asian stocks reached a two-month peak, propelled by Wall Street’s rally and a weakening dollar amid expectations that the U.S. Federal Reserve may halt rate hikes. The MSCI’s index of regional shares outside Japan rose, aiming for its largest monthly gain since January.

Japan’s Nikkei slightly retracted from a three-decade high but remains Asia’s top performer this year with a 28% increase. China’s CSI300 and Hong Kong’s Hang Seng advanced, buoyed by reduced U.S.-China tensions.

Investors anticipate Nvidia’s earnings and the Fed’s minutes to discern future rate directions, as recent data hint at possible easing of U.S. inflation and a shift in Fed policy.

Hang Seng Index Prices Forecast

ASX 200 Prices Forecast

The ASX200 edges up with a modest gain of 0.1%, securing its position at 7081.64. It orbits a pivot point of $7,034, with layers of resistance waiting at $7,143, $7,214, and $7,275.

Support is not far behind at $6,956, with subsequent safety nets at $6,884 and $6,799. The RSI at 58 suggests a budding bullish sentiment, not yet overextended. The MACD reflects a negative divergence from the signal line, hinting at possible bearish undercurrents.

However, the index trading above the 50-day EMA at $7,041 supports a short-term upward trend. The prevailing chart pattern points towards sustained buyer interest, bolstering the positive outlook above $7,035.

The forecast anticipates a potential push towards upper resistances should the bullish threshold hold.

Nikkei 225 Prices Forecast

Japan’s Nikkei 225 modestly ascends, up 0.15% at 33,585.2, navigating near a pivot point of $32,730. Immediate resistance is charted at $33,769, with further milestones at $34,682 and $35,604. Support is established at $31,328, with subsequent backstops at $30,483 and $29,306.

The RSI at 65 indicates a growing bullish momentum, not yet in the overbought region. However, the MACD’s significant negative value against the signal line suggests underlying caution.

Trading above the 50-day EMA of $32,149, the index reflects a bullish inclination in the near term. Technical patterns underscore this optimism, with a potential continuation of the uptrend if the index holds above $32,730. The forecast anticipates the Nikkei 225 probing upper resistance levels in upcoming sessions.

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