Nikkei set to rise on Wall Street gains, BOJ easing hopes

Tue Apr 2, 2013 7:29pm EDT

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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