Nikkei 225, Hang Seng 50, and Nifty 50 Forecasts – Asian Indices Trying to Turn Things Around

Nikkei 225 Technical Analysis

The Nikkei 225 has shown itself to be somewhat bullish during the trading session as we are bouncing from the 50-day EMA. That’s a good sign, and I think ultimately the markets on pullbacks will continue to be a buy on the dips scenario.

The 50-day EMA has been a bit of an uptrend line for a while. I do think we will eventually go looking to the 68,000 yen level. I have no interest in shorting the Nikkei as long as the yen is weak.

Hang Seng 50 Technical Analysis

The Hang Seng in Hong Kong, of course, is going to be struggling because of higher interest rates. Keep in mind the Hong Kong Monetary Authority mirrors the Federal Reserve, so it has a major influence on this index.

You can see we are starting to break through a crucial support level right around the 24,000 level. Dropping from here could open up another 1,000-point drop almost immediately. If we bounce from here, it is probably still a sell on the first signs of exhaustion type of market.

Nifty 50 Technical Analysis

The Nifty 50 in India continues to bounce around the 23,000 rupee level. This is a market that I think is trying to find its traction, but quite frankly, I think this is much like Hong Kong where despite the fact that we did try to rally a bit during the session, the reality is there’s no real upward momentum.

As long as that’s the case, in Asia, you have to prefer the Japanese stock market. It’s been that way for a while, with the exception of the Kospi in South Korea, so don’t forget that one as well. But Japan and South Korea have definitely been outperforming their competitors.

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