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Nikkei seen range-bound, risk-appetite clipped by euro fears
April 19, 2012 / 11:29 PM / 6 years ago

Nikkei seen range-bound, risk-appetite clipped by euro fears

TOKYO, April 20 (Reuters) - Japan's Nikkei share average is
set to tread in a range on Friday after a Spanish bond auction
failed to extinguish fears of a rerun of the euro zone debt
crisis and as U.S. jobs data disappointed.	
    Market players said the Nikkei was likely to trade between
9,500 and 9,600 on thin volume, with investors remaining
cautious ahead of an April 27 Bank of Japan meeting that will
weigh up the need for further easing measures.	
    Nikkei futures in Chicago closed at 9,560, down 40
points, or 0.4 percent from the close in Osaka of 9,600.	
    "The Spanish bond auction didn't go as badly as it might
have, and the euro is likely to strengthen against the yen
today, which would benefit major exporters," said Hiroichi
Nishi, equity general manager at SMBC Nikko. 	
    Spain issued 2.5 billion euros ($3.3 billion) in 2- and
10-year bonds on Thursday, at the top end of the targeted amount
and on solid demand, but yields still rose above paper issued in
a January auction. 	
    The concern that the country could be unable to finance its
own debt and worsen the euro zone debt crisis has recently
spooked investors.	
    U.S. stocks fell overnight following poor jobs data and
disappointing earning results from several companies, including
Qualcomm Inc and Stanley Black & Decker.	
    Microsoft Corp's profit report beat forecasts and
pushed the stock 2.7 percent higher in extended-hours trading.	
    "Microsoft's results were encouraging but they're unlikely
to push the Nikkei up much," said Nishi, who said the weakening
yen is likely to have more impact on domestic stocks. 	
    The yen has eased over the past three days, with the dollar
creeping up to 81.68 yen, nudging major exporters such as Toyota
 to outperform the index. 	
    Strategists said the currency would be unlikely to weaken
significantly before the BOJ meeting on April 27, when the
central bank is widely expected to announce further monetary
easing. 	
> Wall St falls on weak data, Qualcomm drags             
> Euro climbs vs U.S. dollar, yen in volatile trade    
> Bonds rise as data supports easy monetary policy      
> Gold falls for fifth day, silver demand seen higher  
> Crude steady, gasoline down as supply worries ease    	
    STOCKS TO WATCH	
    --OLYMPUS CORP 	
    Disgraced Olympus will hold its extraordinary shareholders
meeting at 0830 Japan time (2330 GMT), where shareholders will
be updated on the accounting scandal and be asked to approve
results restated in December after an external panel revealed
the firm hid investment losses off its books for 13 years.
 	
    --RICOH CO LTD 	
    U.S. Eastman Kodak Co has filed a U.S. patent lawsuit
against Ricoh and accused the Japanese company of failing to pay
past royalties, report sales of licensed digital camera products
and pay interest. 	
    --SONY CORP 	
    A Sony-led consortium won European Union approval on
Thursday to buy EMI's music publishing business for $2.2
billion, on the condition that it sell the worldwide publishing
rights of artists including Robbie Williams and Lenny Krativz.
 	
    --TOKYO ELECTRIC POWER CO 	
    The months-long hunt for the next chairman of Tokyo Electric
Power Co ended on Thursday after Kazuhiko Shimokobe, a lawyer
with expertise in turning around businesses and a member of the
bailout body for the firm, accepted an offer to run the operator
of the crippled Fukushima nuclear plant.

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