Nikkei set to fall after Wall St extends losses; subdued trade seen

Mon Aug 19, 2013 7:25pm EDT

TOKYO, Aug 20 (Reuters) - Japan's Nikkei share average is
expected to open lower on Tuesday, tracking another weak showing
on Wall Street, with the absence of positive catalysts set to
keep investors sidelined for much of the day.
    The benchmark Nikkei was likely to trade between 13,500 and
13,700, strategists said, while Nikkei futures in Chicago on Monday closed at 13,580, down 1.4 percent from the
Osaka close of 13,770.
    "Although I expect the Nikkei to slip today, I don't think
the market mood has turned sour at all," said Toshiyuki
Kanayama, senior market analyst at Monex Inc. 
    "It's just that most investors are reluctant to trade, but I
would say, that's not because of summer vacation. They are
waiting for a clear market direction to emerge, which I believe
may take some time."
    The yen was last quoted at 97.65 yen to the dollar,
little changed from Monday but moving away from a seven-week
high around 95.81 yen touched earlier this month. 
    A weaker yen sharpens Japanese exporters' competitive edge
in global markets and boosts their dollar earnings when
repatriated.
    U.S. stocks lost ground on Monday, with each of the major
indices falling for a fourth straight session, as investors were
hesitant to make new bets ahead of an expected shift in Federal
Reserve policy that could lead to higher interest rates.
    The Nikkei rebounded 0.8 percent on Monday to
13,758.13, but failed to break above the five-day moving average
at 13,815.67. The broader Topix gained 0.6 percent to
1,149.13.
    The benchmark Nikkei is still up 32 percent this year,
spurred by the government's expansionary fiscal policy and the
Bank of Japan's aggressive monetary stimulus.

> Wall St falls for 4th straight session as Fed in focus    
> Euro rises on Bundesbank report; Fed minutes eyed       
> Yield reach 2-year highs as tapering seen near           
> Gold falls on worries over Fed stimulus curb            
> Brent oil hit by profit-taking, supported by Egypt       
    
    STOCKS TO WATCH
    --NIPPON PAPER INDUSTRIES CO LTD 
    Nippon Paper will begin retail sales of electricity to
companies and municipalities in fiscal 2014, making a full entry
into the power business, the Nikkei business daily reported on
Tuesday.
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