Trading The Nikkei 225 Index This Week

Nikkei 225 Index Heads South as Key Sectors Plunge….

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The Nikkei 225 index is trading at 16,774.24, down 0.39% or 65.78. The index is down 11.87% for the year to date. The 1-year return on the index is -6.32%. The 52-week trading range is 14,864.01 on the low end and 20,012.40 on the high end. On Thursday 13 October 2016, the index had 154 members down and 66 members up. The best performing companies include the following Top 5:

• Denka Co. Ltd trading is up 3.40%
• Toshiba Corporation is up 3.15%
• Pioneer Corporation is up 2.71%
• Konami Holdings Corporation is up 2.63%
• Fuljikura Ltd is up 2.30%

The Bottom 5 companies on the day included:

• Showa Shell Sekiyu KK is down 4.04%
• Kobe Steel Ltd is down 3.33%
• Nippon Sheet Glass Co. Ltd is down 3.23%
• Taiheiyo Cement Corp is down 2.83%
• Minebea Co Ltd is down 2.71%

Japanese stocks showed little change after weak Chinese export data initially led the index higher. Chinese export figures provided a ‘default stimulus’ to the Nikkei 225 index. By the close of the trading session on Thursday, 13 October 2016, the Nikkei 225 index pared gains by as much as 0.9%. However, the JPY made inroads against the USD. The 5.6% decline in September exports in China buoyed demand for the JPY. However, it is now apparent that weak global demand is weighing heavily on the performance of global indices. The FOMC (Federal Open Market Committee) minutes indicated that it is touch and go with a rate hike. The probability of a rate hike on Wednesday, 2 November 2016 is just 9.3%. For Wednesday, 14 December 2016, there is a 63.6% probability of a 25-basis point rate hike.

Japan Securities Rally as China Securities Flounder

When the CNY weakened, the JPY strengthened. The Nikkei 225 index also rallied when Chinese export data proved disappointing. Many analysts were expecting Chinese export figures to increase, so the sudden turnaround resulted in pared gains with Japan stocks. Some key performance figures include the following:

• The USD/JPY currency pair is currently trading at 103.5080, down 0.7175% or 0.7480 JPY. The 52-week trading range and the pair is 99.57 on the low end and 123.59 on the high end. For the year-to-date, the USD/JPY pair is down 13.96%.
• The Tokyo Stock Exchange Tokyo Price Index (Topix) is currently trading at 1,342.31, down 0.04.The year-to-date return for this index is -13.25%, and the 1-year return is -8.81%. The 52-week trading range for the Topix is 1192.80 on the low end and 1,609.76 on the high end.

Increased Volatility on Nikkei 225 Good for Binary Options Traders

It is particularly important to note that Japan stocks rose on the back of a weak performance by Chinese September exports. Growth of 2.5% was forecast, but a decline of -5.6% took place. Analysts are also expecting Chinese imports to expand by 5.5%, but they grew at a paltry pace of 2.2%. The Topix was dragged lower by the performance of the warehousing sector, mining sector, petroleum and plastic sector and chemical sector. Rising stocks outpaced declining stocks by 1,180 to 758 on the TSE (Tokyo Stock Exchange). Some 130 stocks on the Tokyo Stock Exchange traded flat. Volatility was also higher on the Nikkei 225 options.

The volatility index figure increased by 3.56% and settled at 21.25 and this bodes well for binary options index and currency traders.