Nikkei 225, Kospi and Hang Seng 50 Forecasts – Asian Indices Continue to See Mixed Results

Nikkei 225 Technical Analysis

The Nikkei 225 in Japan has rallied quite a bit and showed signs of strength as we continue to see Japan itself do fairly well. A weak yen, of course, helps. But really at this point in time, I think we’ve got a situation where short-term pullbacks offer you opportunities.

I think the 64,000-yen level is an area that I think a lot of people will be watching closely as potential support on pullbacks. I do think we’re going to try to get to the 68,000-yen level.

Kospi Technical Analysis

The Kospi in South Korea continues to just go straight up in the air as the AI and semiconductor situation is continuing to be extraordinarily bullish. With that being said, I think you have a situation where it’s only a matter of time before we get to 8,800.

Short-term pullbacks should see plenty of support near that crucial 8,000 level. I also recognize that there is support at 7,000, although that would be a pretty significant drop from here.

All things being equal, I do like the Kospi. Kospi has been one of the better performers for a while now, so I don’t see any reason to think that’s going to change anytime soon.

Hang Seng Technical Analysis

The Hang Seng in Hong Kong continues to see some stability right around the 25,000 level. We did try to bounce a bit during the day; we just don’t have enough momentum. And you have to keep in mind that in Hong Kong, monetary policy mirrors the Federal Reserve, so it is suffering at the hands of tight monetary policy more so than many other indices would come out of the Fed.

In fact, I think you’ve got a situation where traders look at this as a proxy. I think ultimately, though, we will continue to go back and forth. I do expect to see a little bit of a recovery here. This is a market that quite frankly, I think is trying to find its floor. Maybe it’s found it, maybe it hasn’t, but a break above the high from the Thursday session might be a really good sign.

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