Nikkei225 - enters bear market following this morning's 5% plunge
The $Nikkei 225 Index(N225.JP)$ December futures tumbled 5% to 57,870 as of 850AM this morning, breaking below the 60,000 level and marking a 20% decline from its June peak of 72,366
A correction of 20% from a recent high is generally considered as a technical bear market
⚠The tech-driven rally in the Nikkei225 which has led the index to outperform globally has come under pressure given the new-found fears over tighter data-centre regulation and a slowdown in the US AI Capex in the US given this week's Democratic sweep of the US Congress
Semiconductor stocks in Japan are leading today's decline, pushing the Nikkei225's RSI down to 25.9, well below the oversold threshold of 30
✳Leveraged exposure has amplified today's move in Macquarie's Nikkei225 call warrants which are among this morning's top losers with losses between 29% and 100% while put warrants have jumped between 31% to 133%
Foresee a tactical bounce following the current oversold condition of the Nikkei225? Investors can consider using trending Nikkei225 call warrant $NKY 66000MBeCW270312(51KW.SI)$ which costs SGD 0.154 while the Nikkei225 futures is trading at 57,800
Expecting further downside? Investors who remain bearish on the Nikkei225 can consider put warrants which move inversely from the underlying. In this case, trending Nikkei225 put warrant $NKY 57000MBePW270312(VT9W.SI)$ which has gained 49% given the Nikkei's 5% fall may offer a leveraged way to express a bearish view on the Japanese market
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