Japan Nikkei set to climb after Wall St surge
TOKYO (Reuters) - Japan's Nikkei average is expected to climb on Tuesday after U.S. shares soared, with stocks climbing across the board in the wake of international government pledges to pour cash into struggling banks and restore confidence in the global financial system.
One stock to watch will be Mitsubishi UFJ Financial Group (8306.T) after it completed a $9 billion investment in Morgan Stanley.
The deal by Japan's biggest bank sent Morgan Stanley shares soaring and helped drive a Wall Street rally in financial shares.
"We've got lots of good factors here -- the Wall Street rally, a surge in Nikkei futures in Chicago, and a recovery of the dollar against the yen," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
"It's not a question of individual stocks today, we'll see strong rises across the board."
The dollar was fetching around 102.16 yen in early Asian trade after rising more than 1 percent against the yen on Monday, when Japanese markets were closed for a holiday.
The benchmark Nikkei .N225 is expected to jump and then move between 8,800 and 9,200. It closed at 8,276.43 on Friday after its biggest one-day loss in percentage terms since the 1987 stock market crash.
Nikkei futures traded in Chicago closed at 9,000 on Monday compared with the Friday Osaka close of 8,020.
