Barring the Indian stock market, Asian equities mostly ended Wednesday’s session, August 26, higher, as a decline in crude oil prices, easing pressure on US bond yields and a revival in chip stocks ahead of Nvidia Corp.’s results supported gains across the region.
Japan’s benchmark Nikkei 225 rose 0.5% to 66,316, while Australia’s S&P/ASX 200 slipped 0.4% to 9,127. South Korea’s Kospi jumped 1.3% to 6,808.
Hong Kong’s Hang Seng gained 0.56% to 25,652, while the Shanghai Composite edged up 0.6% to 3,911. In the domestic market, the Nifty 50 fell 0.52% to 24,207, while the Sensex declined 0.05% to 77,614.
Turning to the commodity market, crude oil prices remained lower as the latest US economic sanctions on Iran were less severe than markets had anticipated. US Treasury Secretary Scott Bessent said countries trading with Tehran would be given a deadline to wind down their ties or risk unilateral penalties.
Oil prices were also weighed down by renewed hopes of the reopening of the Strait of Hormuz after Iran resumed talks with Oman on managing the strategic waterway. Brent crude, the international benchmark, fell $1.60 to $86.98 a barrel.
Hopes of renewed peace talks were further supported after a delegation from Pakistan reportedly held discussions with Iran’s president on reviving negotiations to end the Iran-US conflict.
The decline in crude oil prices also supported a rally in bonds. Treasuries held on to their gains from Tuesday, when the benchmark 10-year yield fell seven basis points. Government bonds in Japan and New Zealand also advanced, while Australian bonds erased their earlier gains and declined after an inflation report boosted expectations of an interest-rate hike.
KOSPI, Dow Jones, TAIEX, Hang Seng and Nikkei: Key levels to watch
Mahesh M. Ojha, VP — Research and Business Development at KC Securities, has outlined key support and resistance levels for major global indices.
For South Korea’s KOSPI, Ojha sees resistance at 6,940, 7,090 and 7,200, while support is placed at 6,620, 6,500 and 6,350. For the Dow Jones Industrial Average, he has identified resistance levels at 53,705, 53,840 and 54,000, with support at 53,260, 53,100 and 52,800.
On Taiwan’s TAIEX, Ojha sees resistance at 46,050, 46,200 and 46,500, while support levels are placed at 45,700, 45,480 and 45,260. For Hong Kong’s Hang Seng, the resistance levels are 25,800, 25,950 and 26,200, while support is seen at 25,480, 25,385 and 25,200.
Meanwhile, for Japan’s Nikkei 225, Ojha sees resistance at 66,500, 66,750 and 66,900+, while support levels are placed at 65,740, 65,620 and 65,500.
Nifty eyes 24,600 above 24,400; Bank Nifty needs to cross 58,000 for upside: Expert
Ponmudi R, CEO of Enrich Money, said that, technically, the 24,400 region remains the immediate and crucial resistance zone. “A sustained breakout above 24,400 would strengthen the technical structure and could pave the way towards 24,500–24,600. Until then, selling pressure at higher levels is likely to keep the index capped.”
On the downside, he said that 24,200 remains the immediate support, followed by the stronger 24,100–24,000 zone. “A decisive break below 24,150 could increase selling pressure and expose the index to the 24,000 psychological level.”
On Bank Nifty, Ponmudi said that a sustained move above 58,000 would be crucial to strengthen the upward momentum and pave the way for an advance towards the 58,300–58,500 zone.
On the downside, he said that 57,600–57,500 is likely to act as the immediate support zone, which is aligned with the 20-day EMA, making it an important level to watch, with the next support at 57,300–57,200. “Momentum remains constructive, with the daily RSI at 55.11, above its signal line of 51.14, reflecting a mildly bullish undertone.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
