Nikkei soars for third session
By Elaine Lies |
April 6, 2010, Tuesday
|
Print Edition
Print Edition
JAPAN'S Nikkei average closed at an 18-month high for the third straight session yesterday, buoyed by strong United States jobs data that suggested economic recovery is taking deeper hold, though earlier gains were pared as investors locked in profits.
US employers created jobs at the fastest pace in three years, news that pushed the yen to a seven-month low against the US dollar and helped the Nikkei forge above a 38.2 percent retracement of its slide from a 2007 peak to its 2008 trough.
But Fast Retailing slid 10.6 percent, its biggest one-day loss since January 2007, after the company said its Uniqlo casual-clothing chain's same-store sales slid 16 percent in March as cold weather hurt sales of spring clothing.
Sharp Corp rose 3.3 percent to 1,249 yen (US$13.23). It plans to start making advanced 3D displays this year that require no special glasses for cell phones and other mobile devices.
"Gains are being limited by a bit of profit-taking, based on the sense that the Nikkei may be a little overstretched and the fact that this long-awaited jobs news is finally behind us," said Hiroaki Osakabe, fund manager at Chibagin Asset Management.
Technical indicators such as MACD as well as daily and weekly Ichimoku charts show the Nikkei is in an uptrend.
But the Nikkei's relative strength index has risen to 76, well above levels at which the market is considered overbought, and on daily charts it has broken through its upper Bollinger Band, a move that can signal a correction, albeit often slight.
The benchmark Nikkei hit the day's high of 11,408.17 within minutes after the opening and pared gains steadily afterwards. It closed up 0.5 percent, or 53.21 points, at 11,339.3.
The broader Topix gained 0.6 percent to 995.68 after earlier rising as far as 996.97, its highest in 18 months.
US employers created jobs at the fastest pace in three years, news that pushed the yen to a seven-month low against the US dollar and helped the Nikkei forge above a 38.2 percent retracement of its slide from a 2007 peak to its 2008 trough.
But Fast Retailing slid 10.6 percent, its biggest one-day loss since January 2007, after the company said its Uniqlo casual-clothing chain's same-store sales slid 16 percent in March as cold weather hurt sales of spring clothing.
Sharp Corp rose 3.3 percent to 1,249 yen (US$13.23). It plans to start making advanced 3D displays this year that require no special glasses for cell phones and other mobile devices.
"Gains are being limited by a bit of profit-taking, based on the sense that the Nikkei may be a little overstretched and the fact that this long-awaited jobs news is finally behind us," said Hiroaki Osakabe, fund manager at Chibagin Asset Management.
Technical indicators such as MACD as well as daily and weekly Ichimoku charts show the Nikkei is in an uptrend.
But the Nikkei's relative strength index has risen to 76, well above levels at which the market is considered overbought, and on daily charts it has broken through its upper Bollinger Band, a move that can signal a correction, albeit often slight.
The benchmark Nikkei hit the day's high of 11,408.17 within minutes after the opening and pared gains steadily afterwards. It closed up 0.5 percent, or 53.21 points, at 11,339.3.
The broader Topix gained 0.6 percent to 995.68 after earlier rising as far as 996.97, its highest in 18 months.
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