Nikkei set to rebound on yen's pullback; cautious on Syria

Wed Aug 28, 2013 7:41pm EDT

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.