Nikkei, Kospi and ASX 200 Forecasts – Asian Indices Drop into the Weekend Offering Value

Nikkei 225 Technical Analysis

The Nikkei 225 has fallen pretty significantly during the trading session on Friday, as we continue to see a lot of volatility and noisy behavior. That being said, I look at this as a potential buying opportunity as the market has a ton of support near the 66,000-yen level and then the 64,000-yen level. We are obviously in a very bullish trend longer term, and I plan on using this as a buying opportunity once we start to bounce.

Kospi Technical Analysis

The Kospi in South Korea has fallen as well, and a lot of this comes down to tech stocks getting wrecked. This, of course, is due to a little bit of overbought condition in many of these names, and then we have the fact that the jobs report in the United States came out hotter than anticipated, and that suggests that perhaps the Federal Reserve will have to be tighter for longer. And then of course we have concerns about the overall supply chain coming through the Strait of Hormuz, which Asia is extraordinarily vulnerable to.

ASX 200 Technical Analysis

The ASX 200 in Australia has fallen really hard during the trading session as, quite frankly, this is starting to look a little bit dangerous. But if we can recapture the 8,625 level, then I suspect you have an opportunity to go higher, maybe trying to reach the 200-day EMA, possibly even 8,760.

I have no interest whatsoever in shorting this market. I do think, given enough time, we probably have a situation where we will continue to see Australia perform fairly well, but there is a lot of noise because of that Strait of Hormuz situation. So, we get a little bit of risk on appetite out there around the world, I think the ASX 200 is a good candidate for a 1- or 2-day bounce.