JGB Will Move 'Sharply' Lower: Pro
Tres Knippa, owner of Kenai Capital Management, says that Japan is going through "a shift of sentiment" and that it's only at the beginning of "a very sharp move lower" for JGB.
"If tonight, we get good data then that will fuel talk about QE tapering and hit stock markets globally," said Kelly Teoh, markets strategist at IG Markets.
"We think the Nikkei will end the year higher, but there're just lots and lots of profit taking right now," she said, adding. "It's bloodshed."
Ben Collett, head of Asian equities at Sunrise Brokers in Hong Kong, said that those investors who had hoped for a rebound after the slide in the Nikkei exactly a week ago have been left disappointed and were bailing out of their positions, exacerbating the tumble.
"The guys that haven't sold in the first leg are getting drawn in," he said.
The market has witnessed heightened volatility in the past week, swinging between heavy gains and losses almost on a daily basis.
Collett foresees heavier losses in the market over the coming days. "We would look to re-enter the market at 13,100, if it keeps going down,we won't step in again until around 11,300," he said.
(Read More: The Sun Will Rise: Why Investors Still Love Japan)
One trader said that he had seen an uptick in the number of short positions on the Nikkei.
CMC's Chua said the Nikkei was hovering close to key chart support at the 13,500 area and a break through that level could see Japan's stock market fall to 12,000 and levels not seen since early April.
—By CNBC's Dhara Ranasinghe and Ansuya Harjani
30 May, 2013
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Source: http://www.cnbc.com/id/100775197
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