Nikkei ends at a fresh 7-year high

FXStreet (Mumbai) - The Japanese equity markets rose to a fresh 7-year high on rumors that Prime Minister Abe will delay the second sales tax hike in order to avoid damaging the Japanese economy.

The Nikkei ended the day 0.43% higher at 17,197 levels, compared to the previous session’s close of 16,855.30 levels. The index clocked a high of 17,441 levels as investors cheered media reports that rime Minister Shinzo Abe is expected to put off the consumption tax hike to 10 percent planned for October 2015. Moreover, the stock markets had opened higher after the US DJIA rewrote its record closing high for the fifth straight session.

The index erased large part of its gains after Chief Cabinet Secretary Yoshihide Suga showed a negative stance on postponing the tax hike. Moreover, profit taking also pushed the stock prices lower.

Among the stocks, Automakers Toyota and Honda, and electronics makers Sony and Sharp advanced on the Yen’s weakness., while the construction companies Shimizu and Kajima turned lower.

Nikkei Technical Levels

The index has an immediate support at 17,160, under which the prices can fall to 17,127 levels. Meanwhile, resistance is seen at 17,400 levels.