Nikkei extends gains, up 2%

FXStreet (Mumbai) - The Japanese equities index opened with a positive gap of 330 points and climbed higher on solid overnight gains on Wall Street and a weaker yen, extending gains for third consecutive day in a row.

The benchmark Nikkei 225 index trades up 2.26% or 389 points at 17598.50, compared to previous session’s close of 17210.05. The index remains supported on weaker Japanese currency the Bank of Japan announced its decision to leave its monetary policy and the quantum of asset purchases unchanged in its December meeting. The index breadth is positive with an advance decline ratio of 207:15.

Among major gainers, Sumitomo Realty & Development, Tokyo Electron, Isuzu Motors, Daiwa Securities Group and IHI Corp gained 5%. Among the losers, Showa Denko KK, Sony Corp, Shiseido Co and Yamato Holdings declined 1.7% to 2.61%.

Nikkei Technical Levels

The index has an immediate resistance stands at 17630 (Dec 10 High) above which gains could be extended to 17881.76 (Dec 3 High) levels. Meanwhile, support is seen at 17451.02 (100-day SMA) and from here to 17393.16 (10-day SMA) levels.

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