Nikkei to stay near 4-wk high but resistance looms

Wed Dec 7, 2011 6:16pm EST

TOKYO, Dec 8 (Reuters) - Japan's Nikkei share average
on Thursday is likely to stay near a four-week high struck the
previous day, but its advance is expected to stall at technical
resistance levels ahead of key events in Europe.	
    Many market players said selling is likely to emerge between
8,700 and 8,800, where the Nikkei traded heavily from October to
early November. The bottom of the cloud on the daily Ichimoku
chart also looms at 8,747.	
    On Wednesday, the benchmark Nikkei added 1.7 percent
to 8,722.17, its highest close in four weeks and ending above
its 75-day moving average for the first time since late October,
supported by optimism on progress in the euro zone's efforts to
contain its debt crisis. The broader Topix index gained
1.6 percent to 749.63.	
    "As the Nikkei gained considerably yesterday, further gains
will be limited ahead of key events in Europe. But sentiment is
improving," said Toshiyuki Kanayama, a market analyst at Monex
Securities.	
    Still, many investors are likely to stay on the sidelines
for now as they look to the European Central Bank's policy
meeting later in the day, where a rate cut of 0.25 percentage
point is expected.	
    This will be followed by an EU summit on Friday, where
investors hope leaders will make progress in efforts to bolster
confidence in euro zone sovereign debt, including further
integration of the bloc's fiscal policy.	
    Market players said the Nikkei was likely to trade between
8,650 and 8,750 on Thursday.	
    Nikkei futures in Chicago closed at 8,710, up from
the close in Osaka of 8,680.	
         	
> Wall St edges up with eyes on EU summit             
> Euro steady vs dollar ahead of ECB, EU summit     
> Bond prices rise as EU hopes tempered              
> Gold rises in thin trade, awaits ECB, EU meetings 
> Oil falls on higher U.S. stocks, EU worries        	
    STOCKS TO WATCH	
    --Tepco 	
    The Japanese government is considering injecting at least 1
trillion yen ($12.9 billion) into Tokyo Electric to
shore up the depleted capital of the Fukushima nuclear plant
operator, the Mainichi newspaper reported on
Thursday. 	
    --Olympus 	
    Olympus Corp said on Wednesday it would set up two expert
panels to consider legal steps against those responsible for a
huge loss cover-up scheme and to examine the responsibility of
auditors.  	
    --Softbank 	
    Softbank Corp's mobile business gained 312,000 new
subscribers in November, beating rivals KDDI and NTT
Docomo for the 20th consecutive month, boosted by
strong sales of Apple's iPhone 4S.	
    -- Panasonic 	
    Panasonic Corp will have to pay a penalty of 7.668
million euros after the European Commission said on Wednesday it
was fining six producers of refrigeration compressors including
Panasonic.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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