Nikkei to rise for 3rd day; gains may be limited after rapid rise

Mon May 13, 2013 7:47pm EDT

TOKYO, May 14 (Reuters) - The Nikkei share average is
expected to extend gains into a third day on Tuesday as the
weak-yen trend continues to lift exporters, but gains may be
limited as investors turn cautious over the rapid pace of the
latest rally.
    Market players said the Nikkei was likely to trade between
14,700 and 14,900 on Tuesday after rising 1.2 percent to
14,782.21 the previous day, its highest closing level since late
December 2007. The Nikkei rose as high as 14,849.01 on Monday,
its highest since January 2008 on an intraday basis.
    Nikkei futures in Chicago closed at 14,870, up 0.3
percent from the close in Osaka of 14,820.
    Analysts said the market may tap a new 5-1/2 year high in
early trade on optimism stemming from the weaker yen, but they
noted there may be a pullback in late trade on caution over the
market's recent steep rises.
    Since the dollar pierced the 100 yen mark last Thursday, the
Nikkei has gained 4.2 percent and is trading 8.5 percent above
its 25-day moving average of 13,629.81.
    "The market is seesawing between worries about the steep
rises and hopes for the government's growth strategy," said
Yoshiyuki Kondo, an analyst at Daiwa Securities. "It seems like
good timing to see a pause in the market."
    The Nikkei has gained 42 percent this year, bolstered by
expectations for the government's growth policies and aggressive
monetary easing by the Japanese central bank.
    On Monday, 5.30 billion shares changed hands on the board,
the highest since April 5.
    The dollar last traded at 101.80 yen.
> Wall Street ends near flat after recent highs             
> Dollar up for 3rd straight session; US retail sales help 
> Treasuries prices fall after as U.S. retail data         
> Gold down 1 pct on fund outflows, economic hopes        
> Oil falls as China demand slows, U.S. gasoline sales dive 
    STOCKS TO WATCH  
    -Sharp Corp 
    Sharp, a supplier to Apple Inc, will aim to boost
sales to the iPhone maker's chief rival Samsung Electronics Co
 under a three-year rehabilitation roadmap to secure
its survival. 
 
    -Nintendo Co 
    Nintendo won a U.S. appeals court decision in a patent case
that will allow it to keep importing its popular Wii system into
the United States. 
Ÿ    
    -Isuzu Motors Ltd and Hino Motors Ltd 
    Isuzu and Hino have both budgeted significantly more funds
for plants and equipment this fiscal year, with Isuzu planning
its biggest outlay in 14 years, the Nikkei said.
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