Nikkei slips back from three-week high

<p>The Nikkei has ended the week on a low.</p>

The Nikkei ended the week on a low today (April 4th) after slipping back 0.2 per cent to erase some of the gains piled up by the index in the last few days.

After gaining 1.5 per cent on Wednesday and a further 0.8 per cent yesterday, the Nikkei ended the week at 15,048.03.

The index was damaged by a heavy loss sustained by the share price of Softbank Corp, which fell by 2.4 per cent on the back of tech stocks in the US slipping. Netflix and Facebook were among the technology share prices across the Atlantic to be down for the day yesterday.

Technology stocks are being watched closely in the Far East as a result of the impending initial public offering of Chinese ecommerce retailer Alibaba, which is expected to float in the US later in the year.

Investors are now keenly awaiting the result of a meeting held at the Bank of Japan (BoJ), where future policy is to be debated.

US data

"It is natural to have a correction ahead of the US payroll data today and the BoJ's policy meeting," Yutaka Miura, senior technical analyst at Mizuho Securities, told Reuters.

"Given that the market is already expecting a strong payroll number, there's risk the world's share prices could succumb to profit-taking after the data."

Real estate was a strongly performing sector on the Nikkei today, as Tokyu Fudosan jumped up by three per cent and Mitsubishi Estate rose by 2.2 per cent, while there were also increases for financial companies and brokerages.

Norihiro Fujito, senior strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that market players in Japan are expecting no easing from the BoJ at its meeting today.

He said: "The buying in these shares are driven by event-driven hedge funds making bets ahead of the BOJ meeting. I would say there is risk of a sharp reversal after the BOJ's meeting."

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.