There was also weakness in fuel production. Output of gasoline fell 7.3%, while diesel production was down 14.3%. This is noteworthy because Japan imports 95% of its crude oil from the Middle East, with much of which travels through the Strait of Hormuz. And manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect output to decline further in April. This leaves the Nikkei 225 exposed especially if oil prices remain high and supply problems persist.
Nikkei 225 Technical Analysis: Breakout Setup Forms Between 58,000 and 60,000
Despite uncertainty in the Middle East, the Nikkei 225 is consolidating between 58,000 and 60,000 and looking for its next direction.
The emergence of price compression between 58,000 and 60,000 indicates further upside in the next few weeks, if the 60,000 is broken. This strength is seen in the AI industry and semiconductor stocks. However, a break below 58,000 will indicate further downside toward the 55,000 level.
AloJapan.com