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Nikkei may break below 14,000 as sentiment remains fragile
May 27, 2013 / 11:17 PM / 4 years ago

Nikkei may break below 14,000 as sentiment remains fragile

TOKYO, May 28 (Reuters) - Japan's Nikkei share average is
expected to open lower and may break below the 14,000-mark on
Tuesday as investor sentiment remains fragile after last week's
turbulent trade raised questions about the sustainability of the
remarkable bull-run
    The Nikkei is likely to trade between 13,750 and
14,150 after skidding 3.2 percent to 14,142.65 in the previous
session, strategists said.
    Investors remain nervous after the Nikkei plunged 7.3
percent last Thursday, its biggest single-day percentage loss
since the March 2011 earthquake and tsunami. The selloff was
triggered by worries the U.S. Federal Reserve will roll back its
stimulus this year and weak factory activity data from China,
Japan's second-biggest export market.  
    "The very fragile market will continue because market
participants are cautious over the uncertainty in the
short-term," said Takashi Hiroki, chief strategist at Monex Inc.
    "The Nikkei futures dropped to around 13,700 in the night
session."  
    On Monday, the broader Topix index sank 3.4 percent
to 1,154.07, despite support by the Bank of Japan, which bought
18.8 billion yen ($186 million) worth of exchange traded funds.
    However, while the recent tumult has spooked investors, the
benchmark Nikkei is still up 36 percent this year, and has
gained 14.5 percent since April 4, when the Bank of Japan
announced a sweeping monetary expansion campaign to eliminate
years of deflation and revive growth.
                         
> European shares bounce in thin trade, Fiat rallies       
> Yen firms, euro edges up versus dollar in thin trade    
> Gold rises on physical demand as dollar dips            
> Brent dips on weak economic data, ample supplies         

    STOCKS TO WATCH
    --FAST RETAILING CO LTD 
    Fast Retailing, the Japanese operator of the Uniqlo and
Theory fashion brands, for now will not sign a legally binding
safety pact for factories in Bangladesh, preferring to ramp up
its own inspections, the Wall Street Journal reported on Monday.

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