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Nikkei clocks three-consecutive weekly gains

FXStreet (Mumbai) - The Japanese equities turned higher today tracking persistent strength in the USD/JPY exchange rate. Stocks opened higher, and managed to end the day with gains, thereby finishing higher for a third-consecutive week.

The Nikkei ended 0.52% higher at 16,880.38, after opening at 16944 levels. The Topix rose 0.52% to end the day at 1363.37. The Nikkei index breadth was positive with an advance decline ratio of 164:59. However, the gains in the index were capped as investors are worried about market overheating, since the Nikkei has jumped 2400 points, or 16%, in less than a month.

Among stocks, the top gainers were the exporters like electronics giants Sony and Panasonic, construction machinery maker Komatsu and farm machinery manufacturer Kubota. Elsewhere, Chubu Electric surged 4.97% and Kansai Electric climbed 4.19%. Meanwhile, automaker Suzuki lost 5.80 after Nomura Securities revised down its investment rating on the company.

The Japanese equities may extend gains next week if the USD/JPY moves high on a strong US Non-farm payrolls data. On the contrary, a disappointing data can fuel sharp correction in the USD/JPY pair and Japanese equity markets.

Nikkei Technical levels

The index has an immediate support at 16729.50, under which the prices can fall to 16,530 levels. Meanwhile, strong resistance is seen at 17094.5 and 17,194 levels.

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