Nikkei set to rebound, but caution on Cyprus to cap

Sun Mar 24, 2013 7:24pm EDT

TOKYO, March 25 (Reuters) - Japan's Nikkei average is
expected to rebound on Monday after a sharp fall at the end of
last week, although caution about whether or not Cyprus can meet
a deadline to secure a bailout is expected to temper gains.
    The Nikkei is likely to trade between 12,350 and
12,550, strategists said, after dropping 2.4 percent to
12,338.53 on Friday. The broader Topix index lost 1.9
percent to 1,038.57 in the previous session.    
    Nikkei futures in Chicago closed at 12,410 on
Friday, up 0.7 percent from the Osaka close of 12,320.
    "Investors are expected to buy back shares that were
oversold in the previous session," said Kenichi Hirano, market
analyst at Tachibana Securities.
    "Cyprus, which I see as a temporary problem for global
markets, is still an issue. Thus, the Tokyo market will likely 
remain nervous," he said.
    Cyprus President Nicos Anatasiades, facing a Monday deadline
to avert a collapse of the island's banking system, held talks
with international lenders over a 10 billion euro ($13 billion)
bailout after a first attempt failed last week. 
    The benchmark Nikkei has rallied more than 42 percent since
mid-November, when Shinzo Abe unveiled his plans for
expansionary fiscal and monetary policies to revive the world's
third-largest economy that swept him to power late last year.
    Boosted by yen weakness and improving sentiment, more than
half of Japanese companies expect a profit rise in the business
year starting April, a Reuters poll showed on Friday, but
investors looking to gain from the fattened coffers may be
dismayed as firms keep the cash-in-house. 
                     
> Wall St rises on hopes for Cyprus deal, but dips for week 
> Euro rises broadly on hopes of Cyprus deal              
> Treasuries near flat as investors on edge over Cyprus    
   
> Gold down as Cyprus fears ease, notches weekly gain     
> Oil up, Brent premium to US crude at narrowest since July 

    STOCKS TO WATCH
    --SHARP CORP 
    Sharp said  it will receive the second half of an agreed
$120 million investment from Qualcomm Inc by June 28,
which will make the U.S. chipmaker its biggest shareholder.
 
    --TOYOTA MOTOR CORP 
    Toyota will ramp up production in Japan by about 10 percent
in April-September as recent yen falls boost exports, the Nikkei
newspaper reported. 
    --JAPAN AIRLINES CO 
    Japan Airlines may buy about 20 A350 jets from Airbus
 for around 400 billion yen ($4.2 billion), the Nikkei
newspaper said, a move that would reduce its reliance on Boeing
Co. Ÿ
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