Nikkei set to fall below 14,000 as yen strengthens; earnings in focus

Sun Jul 28, 2013 7:30pm EDT

TOKYO, July 29 (Reuters) - Japan's Nikkei share average is
expected to fall for the fourth day in a row on Monday as the
yen rose against the dollar, while caution over corporate
earnings is likely to keep investors on the sidelines.
    Market players said the Nikkei was likely to trade between
13,850 to 14,150 on Monday after falling 3.0 percent to
14,129.98 on Friday. If the index falls below 14,000, it will be
the first time since July 4.
    Nikkei futures in Chicago closed at 13,945, down
1.3 percent from the close in Osaka of 14,130.
    "The Nikkei will probably drop below 14,000 quickly in early
trade. If the yen rises against the dollar further during the
session, selling in futures may drag down the cash market," said
Yutaka Miura, a senior technical analyst at Mizuho Securities.
    On Monday morning, the dollar traded at a four-week low of
97.79. A higher yen tends to make export-reliant Japan's
products less competitive in the global market.
    Analysts also said that investors are reluctant to take
positions before big events at home and abroad this week.
    "Investors are focusing on companies' earnings, and it may
be difficult to take positions until they see the results of
many exporters and blue chip companies this week," said Hiroichi
Nishi, an assistant general manager at SMBC Nikko Securities.
    On Monday, Komatsu Ltd, Hitachi Construction
Machinery Co and Sumitomo Mitsui Financial Group
 will report their first-quarter results.
    In the United States, investors will scrutinize the Federal
Open Market Committee policy statement this Wednesday for any
additional clues about the Fed's intended timeline for scaling
back its quantitative easing.
    
> Wall St wipes out losses late to end with slim gain      
> Dollar falls as Fed seen keeping U.S. rates low for some time
 
> Prices gain, Fed meeting in focus                       
> Gold posts 3 percent weekly gain, Fed comment eyed     
> Oil slips on worries about Chinese demand               
    STOCKS TO WATCH
    
    --Tokio Marine Holdings Inc 
    Tokio Marine is seeking acquisitions in the United States
and Mexico to spread out its risk, the CEO of Japan's largest
property-casualty insurer by market value said, as rivals go
after growth closer to home in Southeast Asia. 
    
    --ANA Holdings Inc 
    ANA, which operates the world's biggest fleet of Boeing Co
 Dreamliners, said it found damage to the battery wiring
on two 787 locator beacons during checks after the devices were
identified as the likely cause of a fire on another aircraft in
London this month. 
    
    --KDDI Corp 
    KDDI is expected to post a record-high April-June group
operating profit of roughly 160 billion yen ($1.63 billion), up
70 percent from a year ago, thanks to an increase in subscribers
for Apple Inc.'s iPhone and larger data communication
revenue, the Nikkei reported.
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