Nikkei 225, ASX 200 and KOSPI Forecast – Asian Indices Continue to Look Strong Overall

Nikkei 225 Technical Analysis

The Nikkei 225 in Japan is a little bit flat during the trading session here on Wednesday, but quite frankly, this market has broken out quite nicely yet again over the last couple of days, and it looks very much like a market that is going to be a buy on the dip situation. This is driven by Prime Minister Takachi’s landslide political victory over the weekend and the fact that we are probably going to see a proposed 21 trillion-yen stimulus package in Japan, so that, of course, gets people buying stocks.

The markets are dealing with Foundation Day, but derivatives such as CFDs are still open. Regardless, when they come back, I would anticipate more bullish action on dips, and I would anticipate that buyers would step in to defend 54,750 yen.

ASX 200 Technical Analysis

The ASX 200 in Australia is being driven mainly during the day by financials. Commonwealth Bank of Australia jumped almost 7%. The banking sector’s earnings in general are very good, so that has helped the ASX 200. While most people look at the ASX 200 in Australia as a commodity play, which it is, it also has a strong banking sector. Therefore, we are approaching those highs of 9,100. I do think we continue to grind higher.

KOSPI Technical Analysis

Finally, in South Korea, we have the KOSPI, which is a little bit positive as well. It is up about 1%. It is basically rising in tandem with its peers, playing a little catch-up in Asia with quite a bit of momentum driven by automakers. Kia and Hyundai both have done quite well.

This looks a lot like a buy on the dip type of situation as well. I would keep an eye on any dip that gets near 5,000. The psychology of that round figure probably will do some good for the market, assuming we pull back at all. If we break 5,400 then we just continue to the upside.