TOKYO, June 14 Japan's Nikkei average may regain
13,000 on Friday, after tumbling more than 6 percent in the
previous session, as robust data eased concerns over whether the
U.S. economy can withstand a pullback in stimulus by the Federal
"The Nikkei will rebound today because the U.S. stocks
rebounded after lower jobless claims and strong retail sales,"
said Takashi Hiroki, chief strategist at Monex Inc.
The Nikkei is likely to trade between 12,700 and
13,000, strategists said. On Thursday, it fell to 12,445.38, its
lowest close since April 3, the day before the Bank of Japan
unveiled sweeping stimulus to revive the economy. The broader
Topix index sagged 4.8 percent.
Investors, mainly hedge funds, have been cutting their long
Japanese equities and short yen positions on concerns that the
Fed will roll back its stimulus and after the Nikkei had rallied
more than 80 percent from mid-November to its 5-1/2 year peak
hit on May 23.
The benchmark has fallen nearly 22 percent since that
multi-year high, slumping to a bear market and wiping about $700
billion off its market capitalisation.
U.S. retail sales rose more than expected in May and
first-time applications for unemployment benefits fell last
week, in signs of economic resilience.
Nikkei futures in Chicago closed at 12,920 on
Thursday, up 3.8 percent from the Osaka close of 12,450.
Hiroki added he expected the settlement of Nikkei futures
and options contracts expiring in June would go smoothly,
helping to ease volatility in the market.
The Nikkei is still up 20 percent so far this year.
> Wall St rallies on economic data, technical factors
> Yen hits post-April high vs dlr on Japan equities drop
> U.S. bonds cut gains after weak 30-year bond auction
> Gold drops as U.S. data dims Fed hopes
> Oil up on positive U.S. data; gasoline leads
STOCKS TO WATCH
--KAWASAKI HEAVY INDUSTRIES LTD
Kawasaki Heavy Industries said on Thursday it had ended
merger talks with shipbuilding rival Mitsui Engineering &
Shipbuilding Co Ltd and demoted its president, Satoshi
Hasegawa, who supported the discussions.
--TOYOTA INDUSTRIES CORP
Machinery maker Toyota Industries plans to invest about 300
billion yen ($3.18 billion) over the next three years as it
looks to make itself more competitive, the Nikkei said.