Monday, March 14, 2011

NIKKEI 225 : More Solid Support Near 9800-10000 Points.

Nikkei may extend losses in the near term to 9800 to 10000 territory following the worst earthquake on record. However, consensus view is that the severe repercussions to the GDP and stock market may be limited (unlike the Kobe quake in 1995) because the epicenter was far from Tokyo, and it is unlikely to affect Japanese economy as a whole.

Meanwhile, fears of contagion effect from the Nikkei’s knee jerk reaction today will be mitigated by Bank of Japan’s pledge to ensure financial stability by providing liquidity. Moreover, the government’s pledge to fight decisively against speculative
moves and will not tolerate short-selling to take advantage of the quake will further calm sentiment.

NIKKEI 225 : More Solid Support Near 9800-10000 Points
Nikkei 14-03-2011


Source: HLeBroking

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