Nikkei set to rise, may test a 7-month high on gains by exporters

Sun Nov 25, 2012 6:35pm EST

TOKYO, Nov 26 (Reuters) - Japan's Nikkei share average is
set to rise on Monday and may test a seven-month high, supported
by a positive U.S. lead and expectations that a weaker yen will
boost earnings for exporters.
    Sentiment was buoyed by indications that lenders are closer
to a deal for a vital aid tranche for Greece, which pushed the
euro to a three-week high against the dollar on Friday.
 The euro hit a seven-month high of 106.97 yen
, and was last at 106.92 yen, up 0.6 percent.
    Exporters with high exposure to the euro zone, such as
carmakers like Mazda Motor Corp and precision equipment
makers like Canon Inc and Nikon Corp, may lead
gains, analysts said.
    "Although some investors are cautious about the fast-paced
gains in the Japanese market, they will likely stay buyers on
the back of the improving trading environment in the global
market," said Hiroichi Nishi, general manager at SMBC Nikko
Securities.
    Last week's average daily trading volume was high, with 1.94
billion shares changing hands in the Tokyo Stock Exchange's
first section, up 9 percent from the previous week. Daily
trading value was also positive, with 1.15 trillion yen traded
on the board, up about 13 percent on the previous week.
    The Nikkei rose 1.6 percent to 9,366.80 on Thursday,
its highest closing level since May 2, taking the index near
"overbought" territory, with its 14-day relative strength index
at 69.5. Seventy or above is deemed overbought. The Japanese
market was closed for a national holiday on Friday.
    Market players said the Nikkei was likely to trade between
9,400 to 9,500 on Monday. If the index touches the 9,500-mark,
it will be the first time since April 27.
    Nikkei futures in Chicago closed at 9,430, up from
the close in Osaka of 9,360.
     
 
> Wall St ends higher in short session, led by techs       
> Euro heads for second week of gains on Greece hope     
> US bonds fall in light trade, less safe haven demand    
> Gold above $1,750, up 1.4 pct on weak dlr, technicals  
> Oil rises on Egypt violence, euro zone optimism         
    STOCKS TO WATCH
    
    --Nissan Motor Co 
    Nissan said it plans to sell its Infiniti brand of luxury
cars in Brazil starting in 2014, joining a number of automakers
targeting the country's buoyant high-end consumer market.
 
    Separately, the carmaker, the most exposed of Japan's
leading carmakers to China, expects its sales in the world's
biggest autos market to fall by around a quarter this month from
last year, dented still by anti-Japanese sentiment in a dispute
over ownership of East China Sea islets. 
    
    --Daiichi Sankyo Co 
     Indian drugmaker Ranbaxy Laboratories Ltd has
recalled its generic version of Pfizer Inc's 
cholesterol-lowering drug Lipitor in the United States after
certain batches were found to contain glass particles.
    Daiichi Sankyo has a majority stake in Ranbaxy.
 
    
    --Nomura Holdings Inc 
    Dutch insurer Delta Lloyd has scrapped the sale of
its German business to Japanese bank Nomura, the company said on
Friday, blaming a weak economy and problems gaining approval
from the German regulator. 
    
    --Panasonic Corp, Sony Corp 
    Panasonic has a better chance than rival Sony of surviving
Japan's consumer electronics slump because of its unglamorous
but stable appliance business of washing machines and fridges,
credit rating agency Fitch said Friday.