Nikkei likely to rebound from Friday's sharp fall
TOKYO (Reuters) - Japan's Nikkei share average is likely to rebound on Monday after technical-related selling pushed the benchmark to a two-week closing low on Friday and led to a second straight quarterly fall in July-September.
The Nikkei .N225 was likely to trade between 8,800 and 8,950, strategists said. Nikkei futures in Chicago closed at 8,860 on Friday, down 0.1 percent from the Osaka close of 8,870.
"I think the market should rebound as the drop on Friday was bigger than expected and there was no bad news in the market," said Takashi Hiroki, chief strategist at Monex Inc. "Investors will likely be short-covering today."
The Nikkei shed 0.9 percent to 8,870.16 on Friday, with losses widening in the afternoon as traders said stop-loss selling had been triggered after Nikkei futures broke below 8,900. The broader Topix .TOPX index dropped 1.1 percent to 737.42.
Investors were likely to focus on China's official purchasing managers' index due out later in the day.
In Europe, Spanish bank stress tests, which were released on Friday, showed banks will need 59.3 billion euros ($76.3 billion) in extra capital to ride out a serious downturn, mostly within expectations.
The benchmark Nikkei shed 1.5 percent in July-September, its second straight quarterly loss after suffering a 10.7 percent drop in the April-June period. However, it is still up 4.9 percent this year.
> Wall St marks best third quarter since 2010 .N > Euro slides for 2nd straight week as Spain woes persist <FRX/> > Treasuries rise as Spain, U.S. economy cast wary mood <US/> > Gold posts biggest quarterly gain in over two years <GOL/> > Oil ends higher, post Q3 gain; U.S. gasoline surges <O/R>
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