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Nikkei rebounds

FXStreet (Mumbai) - The Japanese stocks turned higher today after the previous session’s massive sell-off, due to the weakness in the Yen and strong performance of the US Equities.

The Nikkei ended 370.26 points or 2.18% higher at 17,344.06 levels today. The index breadth was positive with an advance decline ratio of 218:6. Moreover, the stocks rose early morning as there were expectations that Prime Minister Abe will postpone the consumption tax hike from 8 percent to 10 percent following the sluggish GDP report and dissolve the Lower House for a snap election.

Among stocks, the exporter electronics maker Sony posted a sharp 6.42 percent gain. Other major gainers included robot maker Fanuc, technology firm Kyocera, electronics maker Nitto Denko and automakers Toyota and Fuji Heavy. Meanwhile, on the minus side were electronics makers NEC, Oki Electric Industry and Fujitsu General after the companies came under the scanner for bid-rigging.

The Nikkei may open higher tomorrow as Prime Minister Abe did announce a delay in tax hike till April 2014 while calling for a snap election on Dec. 16th. Moreover, the Japanese stocks are known to rally ahead of the lower house elections.

Nikkei Technical Levels

The index has an immediate resistance at 17,410.00, above which the gains could be extended to 117,520.00 levels. On the other hand, Nikkei may fall to 17,000, if the immediate support at 17,127 is breached.

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