Nikkei seen edging up after Wall Street but capped
TOKYO (Reuters) - Japan's Nikkei average is expected to edge up on Tuesday following gains on Wall Street, but to be firmly capped as investors await economic data and corporate earnings to see if further gains are sustainable.
"The Nikkei is likely to move mostly sideways today. It has fallen for four successive days and market momentum is waning steadily, but it is not yet low enough to prompt bargain hunting," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
In focus are resource-linked shares such as oil and gas developer Inpex Corp (1605.T) after oil fell 4 percent on Monday on concerns about the global economic recovery.
Market players expect the Nikkei .N225 to trade between 9,600 and 9,850. The benchmark closed down 1.4 percent at 9,680.87 on Monday, below its 25-day moving average of around 9,800.
In a sign the market may start higher, Nikkei futures traded in Chicago edged up 0.1 percent from their Osaka close of 9,700.
On Monday, the Dow and the S&P 500 rebounded in late trading as investors' concerns about the strength of an economic recovery triggered a move into defensive stocks.
(Reporting by Shinichi Saoshiro; Editing by Michael Watson)
