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Ni 225 Strong Corporate Reporting Supports the Index

11/14/2022 1:04 PM

Leading Japanese stock index Ni 225 corrects around 28000.0.

The day before, SoftBank Group Corp., one of the world's largest investment and technology companies, published its financial results, recording quarterly revenue of 1.610 trillion yen, which exceeded the 1.570 trillion yen shown in the previous quarter, but this was worse than the projected 1.611 trillion yen. Automaker Mazda Motor Corp., in turn, reported income of 1.025 trillion yen, almost double the 617.0 billion yen recorded a quarter earlier. In addition, the company posted earnings per share of 112.49 yen, up from 23.81 yen a quarter earlier.

In turn, almost the entire line of Japanese bonds is correcting down while the corporate reporting period continues: the popular 10-year Treasury notes are trading at a rate of 0.236%, which is slightly lower than the 0.255% recorded at the end of last month, while global 20-year bonds are trading lower than the recent high of 1.199%, being at 1.078%.

Tomorrow's report on the state of the Japanese economy may have a key impact on the instrument's quotes. According to analysts' forecasts, Gross Domestic Product (GDP) in the third quarter may grow by 0.3% after increasing by 0.9% a quarter earlier, and in annual terms, the figure may slow down to 1.1% from 3.5%.

The growth leaders in the index are Toto Ltd. (+6.82%), Shiseido Co. Ltd. (+5.30%), NTT Data Corp. (+2.76%), Z Holdings Corp. (+2.71%).

Among the leaders of the decline are Dowa Holdings Co. Ltd. (-14.21%), SoftBank Group Corp. (-13.12%), Olympus Corp. (-9.62%).


On the daily chart of the asset, the price remains within the local ascending corridor, heading towards the resistance line.

Technical indicators are holding a buy signal, which started to strengthen: the histogram of the AO oscillator is forming new ascending bars and the fast EMAs on the Alligator indicator are moving away from the signal line.

Support levels: 27730.0, 26850.0. | Resistance levels: 28400.0, 29240.0.

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