Nikkei trims gains, Tokyo Electron drops 15%

FXStreet (Mumbai) - The Japanese equities index opened on a firmer note, jumping 85 points on open and rallied there on to fresh two-day highs above 20k mark. However, the gains were quickly trimmed as traders remain cautious ahead of the two-day Fed monetary policy meeting that starts later in the day.

The benchmark Nikkei 225 index trades moderately higher by 0.42% at 20066.50, retreating from fresh highs at 20133.78 levels. The index also capped gains as traders continue to weigh poor retail sales data from Japan which highlights the inability of policymakers to boost demand ahead of Friday’s BOJ Monetary policy decision.

The index trades with a positive market breadth, the advance-decline ratio being 154:60. FANUC Corp edges 5% higher, followed by Osaka Gas Co up nearly 4.67%. Among the top losers, Tokyo Electron is down -14.56% after the company’s merger with Applied materials was scrapped following a regulatory roadblock. While Kyocera Corp is down –6.29%.

Nikkei Technical Levels

The index has an immediate resistance stands at 20150k. Meanwhile, support is seen at 19860 levels and from here to 19600 levels.