Nikkei set to rise on yen's weakness; targets 33-Month high

Mon Feb 11, 2013 6:40pm EST

TOKYO, Feb 12 (Reuters) - Japan's Nikkei share average is
set to gain on Tuesday as exporters will likely benefit from a
weaker yen after a U.S. Treasury official said the U.S. supports
Japan's efforts to end deflation  and re-invigorate growth.
    Market players said the Nikkei was likely to trade between
11,250 to 11,450, moving closer to a 33-month high of 11,498.42
struck last Wednesday. The index ended down 1.8 percent to
11,153.16 on Friday. Markets were closed on Monday for a
national holiday.
    Nikkei futures in Chicago closed at 11,395, up 2.0
percent from the close in Osaka of 11,170.
    As finance ministers from the Group of 20 nations are
scheduled to meet this week, investors betting on a weaker yen
were relieved after the Japanese currency slumped against the
dollar and euro after U.S. Treasury Undersecretary Lael Brainard
said the United States supports Japanese efforts to end
deflation and re-invigorate growth. 
    "Investors were worried that finance ministers would
criticize the recent weakness in the yen. While the currency
moves have been sensitive to officials' comments in general,
people thought any comment from G20 would trigger yen buying,"
said Hiroichi Nishi, an assistant general manager at SMBC Nikko
Securities. "But such worries are receding as she (Brainard)
said she supports Japan's efforts to end deflation."
    Japan's aggressive expansionary monetary policies have
sharply weakened the yen in recent months, promoting concerns in
Europe and the United States.
    The dollar touched a high of 94.42 yen on Monday, its
highest level since May 2010.
    "This new yen weakness is a fresh catalyst to lift the
market," said Yutaka Miura, a senior technical analyst at Mizuho
Securities, adding that the Nikkei is likely to easily regain
about 200 points in early trade.
    
> Wall St ends flat as investors seek new catalysts         
> Euro rebounds on Weidmann comment; yen plunges          
> Prices steady to lower ahead of new U.S. debt supply     
> Gold falls to 1-month low on weak physical demand       
> Brent oil falls after U.S. blizzard; Europe worries drag 
    STOCKS TO WATCH
    
    --Denso Corp 
    Denso said Friday that it will invest about 460 million yen
in A&D Co., forming a partnership to jointly develop
medical equipment with the measuring device manufacturer.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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