Nikkei set to rebound on yen's pullback; cautious on Syria
TOKYO, Aug 29 (Reuters) - The Nikkei share average is set to rebound on Thursday after losing ground in the last three sessions, likely helped by the yen's retreat from two-week highs against the dollar and modest gains on Wall Street. Analysts say the gains will be limited amid tensions in the Middle East, where the U.S. is preparing to lead a Western military strike against Syria, while investors are also wary of the persistent selloffs in emerging markets. The benchmark Nikkei is likely to trade between 13,300 and 13,500, strategists said, after sliding 1.5 percent to a two-month low of 13,338.46 on Wednesday. The broader Topix sagged 1.8 percent to 1,114.03. Nikkei futures in Chicago closed at 13,375 on Wednesday, up 0.1 percent from the Osaka close of 13,360. "As the yen pulled back, investors are likely to scoop up recently sold off stocks," said Toshiyuki Kanayama, market analyst at Monex Inc. "But I don't think there is much upside left in the market." The Japanese currency was last traded at 97.71 yen against the dollar, moving away from 96.81 yen touched on Wednesday, a level last visited two weeks ago. A weaker yen makes export-reliant Japan's products more competitive in the global market. The yen is down 13 percent versus the dollar for the year, weighed by the Bank of Japan's radical monetary stimulus launched in April to end years of stubborn deflation and foster growth. Despite the recent falls, the Nikkei is still up 28 percent this year, spurred by the government's expansionary fiscal policy and the Bank of Japan's aggressive monetary stimulus. > Wall St rebounds as energy stocks rise over Syria > Dlr rallies broadly as Syria fears spur bid for safety > U.S. bond prices dip after 3 days of gains, auction tepid > Gold ends mixed, hits 3-1/2-month high on Syria jitters > Brent oil jumps, hits 6-month high as Syria roils market STOCKS TO WATCH --TOKYO ELECTRIC POWER CO INC The operator of Japan's wrecked Fukushima nuclear station, Tepco, should be liquidated, as its failure to learn from its mistakes fuels insecurity, says the governor of a prefecture hosting another of the utility's atomic plants. --PANASONIC CORP Panasonic is finalizing plans to pull out of the consumer smartphone business in Japan, the Nikkei business daily said.
- White House reverses, says Obama met uncle and lived with him during law school
- South Africa mourns Mandela, will bury him on December 15 |
- Flights delayed as air pollution hits record in Shanghai
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- Struggling Sears to spin off Lands' End clothing label