Nikkei set to rise on Wall Street gains, BOJ easing hopes
TOKYO, April 3 (Reuters) - Japan's Nikkei share average is likely to rise on Wednesday, as gains in Wall Street are expected to help the market recover from losses of more than 3 percent in the past two sessions. Investors also remain hopeful of further monetary easing at the Bank Of Japan's policy meeting this week, which should support overall sentiment. Market players said the Nikkei was likely to trade between 12,100 to 12,300 on Wednesday after falling to an almost four-week low of 12,003.43 on Tuesday. Nikkei futures in Chicago closed at 12,170, up 1.2 percent from the close in Osaka of 12,030. The BOJ's two-day policy meeting under new its leadership will kick off on Wednesday. Governor Haruhiko Kuroda is likely to start open-ended asset purchases immediately, rather than in 2014, boost bond buying and extend the maturity of bonds it buys in easing policy. "Trading may not be active before the important event, but investors will probably buy on the dips as selling was overdone (early this week)," said Yutaka Miura, a senior technical analyst at Mizuho Securities. On Tuesday, the Standard & Poor's 500 Index closed at another record high on positive factory data, confirming a steady recovery in the U.S. economy. Analysts said that exporters and reflationary stocks, which include banking and real estate stocks, have become the target of selling by short-term investors as these stocks have outperformed the market on the back of Prime Minister Shinzo Abe's bold policies aimed at reigniting the economy. Long-term foreign investors expect that Japanese equities will post further gains this year as most companies are likely to forecast bright earnings for the current fiscal year through March, they added, noting that the economy is also seen improving on the back of the central bank's easy policies. The benchmark Nikkei rallied 19.3 percent in January-March, its best quarterly performance in nearly four years. The index has added 15.5 percent this year, outperforming its global peers while the S&P 500 has gained 10 percent and the Dow Jones industrial average has added 12 percent. During the same term, the FTSEurofirst 300 has risen 6.2 percent. > Wall St climbs with health insurers, S&P nears high > Dollar rises from one-month low vs yen ahead of BoJ > Gold down 1.5 pct on Wall Street gains, economic hopes > Oil settles mixed on concerns about demand, U.S. pipeline STOCKS TO WATCH --Nissan Motor Co Nissan North America said March U.S. sales of 137,726 marked the company's best month ever. --Fuji Heavy Industries Ltd Subaru of America, a division of Fuji Heavy Industries, is recalling about 200,000 Legacy and Outback sedans and wagons from model years 2005-2009 to check for corroded brake lines. --Sharp Corp Sharp will unveil a business plan on May 14 that will outline how the display panel maker will revive its business and bolster its finances, two sources familiar with the plan said on Tuesday. --All Nippon Airways ANA, the biggest customer for Boeing Co's grounded 787 Dreamliner, will put its pilots through training to resume flights in June, sources told Reuters, after Boeing completed more than half of its tests to get its new battery system certified. --Honda Motor Co Honda will spend 25 billion rupees ($460 million) on a 120,000 cars-per-year plant in India, a senior executive said, as the Japanese carmaker looks to ramp up its activity in the country after splitting from its former partner.
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