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On Wednesday, Japan’s Nikkei 225 index closed at 38,916.15, reflecting gains in U.S. markets where stocks rallied on solid economic data. The broader Topix index also increased by 0.37% to 2,674.11.
Picture: Nikkei 225 rebounds above 38,900, eyeing previous highs as momentum stabilises, as seen on the VT Markets app.
Looking at the recent moves in the Nikkei 225, we see a bit of recovery after it dipped to a low of 38,146.65.
The shorter moving averages (the 5 and 10-period lines) are starting to move up, and they’re getting closer to the 30-period average, which could hint at a short-term shift towards the upside if buyers step in more confidently.
Technology stocks were at the forefront of this upward movement. Electronic components manufacturer TDK saw a 1.7% rise, chip-making equipment producer Tokyo Electron gained 1.16%, and technology investor SoftBank Group advanced by 0.7%.
Conversely, Fast Retailing, the owner of the Uniqlo brand, declined by 0.31%, exerting downward pressure on the Nikkei.
See also: Asian Markets Brace for U.S. Data
Traders are closely monitoring the U.S. presidential election, which remains highly contested. The outcome is expected to influence global markets, including Japan’s, as policies from the next U.S. administration could impact international trade and economic relations.
The technology sector’s performance suggests trader confidence in its resilience amid political uncertainties. However, the decline in Fast Retailing’s shares indicates that not all sectors are benefiting equally from the current market conditions.
As the U.S. election results unfold, market participants should prepare for potential volatility. The Nikkei’s recent gains may be tested depending on the election’s outcome and subsequent policy directions.
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