Nikkei, Hang Seng, and ASX 200 Forecasts – Asian Indices Continue to Chop Around

Nikkei 225 Technical Analysis

The Nikkei 225 was very noisy during the trading session on Thursday, heading above the 67,400-yen level and then pulling back a bit. I think ultimately what we’ve got is a scenario where we are just in a little area of choppiness trying to work off some of the excess froth from the previous session, as well as the longer-term moves.

Hang Seng 50 Technical Analysis

The Hang Seng in Hong Kong has shown itself to be a bit negative. The 25,000 level is a bit of an area that I think a lot of traders will look at through the prism of support. Ultimately, though, bouncing from here I think would make a certain amount of sense. I’m not bullish on the Hang Seng per se, it’s just that we’re at the bottom of a range that is fairly well-defined.

Ultimately, though, one of the biggest problems the Hang Seng has is interest rates in America because Hong Kong mirrors the Federal Reserve’s actions, and therefore it has an outsized influence on this index. A little short-term relief rally would make sense though.

ASX 200 Technical Analysis

In Australia, we have fallen as the area right around 8,750 continues to be a bit difficult. The market is starting to show signs of support though; I would anticipate a small bounce. Ultimately, this is a market I do like for a longer-term return towards the 9,000 level, but this is going to be grindy and choppy, so keep that in mind. A lot of patience will be needed in this market, as the volatility will continue to be based on short-term choppiness.