Nikkei seen boxed in range but set for best April in 20 years

Mon Apr 29, 2013 7:10pm EDT

TOKYO, April 30 (Reuters) - The Nikkei stock average is
expected to tread in range on Tuesday, although it is heading
for its best April performance in 20 years after the Bank of
Japan stunned financial markets earlier this month with sweeping
stimulus measures.
    The Nikkei is likely to trade between 13,750 and
13,950, strategists said, while Nikkei futures in Chicago closed at 13,850 on Monday, down 0.7 percent from the
Osaka close of 13,950 on Friday. Japanese markets were
closed for a public holiday on Monday.
    "The dollar/yen is trading in a stable manner, so Japanese
equities will probably trade stably, too," said Yutaka Miura, a
senior technical analyst at Mizuho Securities.
    The yen was quoted at 97.89 to the dollar in early Asian
trade on Tuesday after rising to an almost two-week high of
97.35 on Monday.
    On Friday, the Nikkei slipped 0.3 percent to 13,884.13,
pulling back from a near five-year high, and the broader Topix
 index dropped 1 percent to 1,161.19.
    The benchmark Nikkei has risen 12 percent this month, on
track for its best April performance since 1993. 
    It has surged 60 percent since mid-November, when Shinzo
Abe, who became prime minister in December, promised
expansionary monetary and fiscal policies to revive the world's
third-largest economy. During the same period, the yen has
weakened 22 percent against the dollar.
    
                     
> S&P 500 closes at record, led by energy, tech shares      
> Euro up after Italy ends political chaos, ECB awaited   
> Treasuries firm as Fed meeting, payrolls data in focus   
> Gold up on cenbank stimulus hopes, eyes Fed meeting     
> Oil jumps stimulus hopes; U.S. export surge eyed         

    STOCKS TO WATCH
    - HONDA MOTOR CO, MAZDA MOTOR CORP 
    Honda and Mazda expect to post vastly higher profits this
financial year as they take advantage of export-friendly
currency moves, but will face a fresh challenge: high costs of
expansion. 
    - NOMURA HOLDINGS INC 
    Nomura reported its highest quarterly profit in seven years
on Friday as Japan's largest brokerage cashed in on the surge in
domestic shares and booked a one-off gain on the sale of a
property affiliate's stock. 
    Separately, an Italian judge said in rejecting an assets
seizure order against the Japanese bank that there was no
evidence that Nomura made wrongful or disproportionate gains
from its contentious derivative deal with Italy's Monte dei
Paschi. 
    - SUMITOMO MITSUI FINANCIAL GROUP 
    Sumitomo Mitsui Banking Corp, a unit of Sumitomo Mitsui
Financial Group, is in advanced talks to buy a $1.2 billion
stake in BTPN, an Indonesian lender backed by TPG Capital,
people familiar with the matter told Reuters. 
    Separately, Sumitomo Mitsui Financial Group, Japan's
third-largest bank by assets, expects year-end net profit to
rise 52 percent to a record high 790 billion yen ($7.9 billion)
as a rally in domestic stock prices boosts earnings.
 
    - ALL NIPPON AIRWAYS, GS YUASA CORP 
    All Nippon Airways, the Japanese launch customer for Boeing
Co's 787, flew its first Dreamliner in more than three
months on Sunday to test reinforced batteries installed by the
U.S. aircraft maker. 
    GS Yuasa is the battery maker for Boeing Dreamliner.
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