June 18, 2013 / 11:37 PM / 4 years ago

Nikkei expected to rise on Fed hopes, weak yen

TOKYO, June 19 (Reuters) - Japan's Nikkei share average is
expected to rise to a one-week high on Wednesday, helped by a
second-straight day of gains on Wall Street as investors bet
that the Federal Reserve would temper worries about an imminent
roll back of its stimulus programme.
    Market players said the Nikkei was likely to trade between
13,000 to 13,350 on Wednesday, after dropping 0.2 percent to
13,007.28 on the previous day.
    Nikkei futures in Chicago closed at 13,210, up1.6
percent from the close in Osaka of 13,000.
    Analysts said that the yen's weakness against the dollar
will also be a positive factor for exporters. The dollar rose to
95.43 yen on Tuesday, having hit a two-month low of 93.78
yen on Thursday.
    "Speculations about the Fed's decision are still keeping
investors on the sidelines, so volume may be low. But Wall
Street's optimistic stance on the Fed outcome is serving as a
tailwind to Japanese stocks," said Yutaka Miura, a senior
technical analyst at Mizuho Securities.
    The Japanese market has seen extreme volatility accompanied
by steep declines over the past few weeks as investors cut their
long Japanese equities and short yen positions on worries of
reduced stimulus from the Fed.
    Disappointment over an underwhelming package of structural
reforms unveiled by the Japanese government recently and worries
over slowing growth in China also contributed to the market
tumult.
    Markets are looking to the Fed to clarify the outlook on its
massive stimulus programme when it ends its two-day policy
meeting on Wednesday. Global markets have been roiled since Fed
Chairman Ben Bernanke suggested last month that the stimulus
could be reduced in coming months if the economy continued to
recover.
     The benchmark Nikkei, which slumped into bear market
territory last week, has fallen 18 percent since reaching the 
mulityear high on May 23. It is still up 5.2 percent since April
4, when the Bank of Japan unveiled sweeping stimulus measures
and has risen 25 percent this year.
    
> Wall St extends rise, investors see no change in Fed policy
 
> Dollar gains on yen ahead of Fed; euro gains on data   
> U.S. bond prices steady before Fed policy meeting       
> Gold down more than 1 pct on Fed jitters, equities gain 
> Oil gains moderately, trading sluggish ahead of Fed     
    STOCKS TO WATCH
    
    --Toshiba Corp 
    Toshiba plans to cut about 10 billion yen ($104 million) in
costs this fiscal year by reorganizing its network of television
factories in Indonesia, China and Poland, the Nikkei said,
citing company sources. 
    
    --Astellas Pharma Inc 
    Astellas is looking to sell its dermatology portfolio, which
could be worth between $500 million and $1 billion, according to
three people familiar with the situation.

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