Nikkei rebounds on renewed optimism

FXStreet (Mumbai) - The Japanese equities index rebounded sharply today, opening with a solid positive gap of 140 points with the upbeat cues overnight from Wall Street buoying sentiment. Most of Asian bourses opened for the first time since last week due to various public holidays.

The benchmark Nikkei 225 index closed down by -0.19% at 19397.98, retreating from session lows at 19241.29 levels. The index edged higher on a relatively weaker yen which pushed the exports stocks higher.

While, the delayed reaction to last week's US non-farm payrolls was evident in the markets, with the less hawkish outlook for US monetary policy lifting sentiment. Investors are kept a close eye on the Reserve Bank of Australia, which will announce its policy decision shortly.

The index ended with a positive market breadth, the advance-decline ratio being 214:7. Inpex Corp was the top gainer; up 4.41%, followed by Obayashi Corp rallying 3.10%. Among the top losers, COMSYS Holdings is down –1.03%. While Nippon Kayaku Co is down -0.32%.

Nikkei Technical Levels

The index has an immediate resistance stands at 19775. Meanwhile, support is seen at 19500 levels and from here to 19416 levels.