Nikkei set to rise after U.S. jobs data buoy Wall St, dollar

Sun Jul 7, 2013 7:48pm EDT

TOKYO, July 8 (Reuters) - Japan's Nikkei share average is
expected to rise on Monday, likely helped by a weaker yen and
upbeat U.S. jobs data that sent the dollar soaring and suggested
the world's largest economy was on a solid footing.
    Market players said the Nikkei was likely to trade
between 14,300 to 14,500 on Monday, and may attempt to scale
fresh new 5-1/2-week heights.
    "There are so many positive factors encouraging buyers,"
said Toshiyuki Kanayama, senior market analyst at Monex Inc.
"But at the same time, there is a feeling of overheating in the
market. So some profit-taking is quite likely."
    On Friday, the benchmark Nikkei jumped 2.1 percent to
14,309.97, the highest closing level since May 29. The broader
Topix index gained 1.5 percent to 1,188.58.
    Nikkei futures in Chicago closed at 14,420 on
Friday, up 0.6 percent from the close in Osaka of
14,340.
    Data on Friday showed U.S. jobs growth was better than
expected in June and the two previous months of gains were
revised higher, increasing the likelihood that the U.S. Federal
Reserve will begin cutting its massive monetary stimulus, known
as quantitative easing, as early as September. 
    The dollar posted broad gains, and U.S. stocks surged as
equity investors were cheered by the strong economic momentum
which offset some of the concerns over a reduction of the Fed's
stimulus.  
    The yen hit a 5-1/2-week low of 101.47 yen to the
dollar in early Asian trade on Monday. 
    The Nikkei is down 10 percents since reaching a 5-1/2-year
high on May 23, hurt by slowing growth in China and concerns of
an imminent rollback of the Fed's bond-buying programme.
However, it's still up 38 percent this year, underpinned by the
Japanese government's sweeping stimulus policies.
      
> Wall St gains as jobs data signals stronger economy       
> Dollar soars to 5-week high vs yen, 6-week peak vs euro 
> Yields jump as U.S. jobs data stoke Fed fears            
> Gold falls 3 pct as U.S. jobs data beat forecast 
> Oil jumps $2 on Egypt, U.S. data 
    STOCKS TO WATCH
    -NINTENDO CO LTD 
    Nintendo, one of the world's largest makers of video game
players, said the personal information of its "Club Nintendo"
members in Japan may have been exposed following a major hacking
attack on its user website.
    -FURUKAWA ELECTRIC CO LTD 
    EU antitrust regulators will next week penalise four car
parts makers including Yazaki and Leoni for taking
part in a cartel, three people familiar with the matter said on
Friday, as part of a crackdown on price-fixing in the sector. 
 
    -NISSAN MOTOR CO LTD 
    French carmaker Renault and its Japanese partner
Nissan will have sold a total of 100,000 electric vehicles so
far by the end of June, Carlos Ghosn, chief executive of both
companies, said on Saturday. 
    -SOFTBANK CORP 
    Japan's SoftBank on Friday received the final approval it
needed from U.S. regulators for its $21.6 billion bid to take
control of Sprint Nextel Corp, the No. 3 U.S. wireless provider
.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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