June 25, 2013 / 11:42 PM / 4 years ago

Nikkei seen rebounding as China seeks to allay credit crunch fears

TOKYO, April 26 (Reuters) - Japan's Nikkei share average is
set to bounce on Wednesday after China took steps to allay fears
of a credit crunch, while sentiment also got a boost from robust
U.S. data and gains on  Wall Street overnight.
    Market players said the benchmark Nikkei was likely to trade
between 13,000 to 13,300 on Wednesday.
    Nikkei futures in Chicago closed at 13,170, up 1.8
percent from the close in Osaka of 12,940.
    The People's Bank of China (PBOC) said on Tuesday that it
had given cash to some institutions facing temporary shortages
and would continue to do so if needed, in a bid to further
assure markets. 
    Fears that the world's second largest economy was sliding
towards a liquidity crisis sent the Tokyo market down on Monday
and Tuesday.
    "Although no one is sure whether the crisis is manageable by
the Chinese authorities, PBOC's announcement is expected to
soothe the markets, at least for now," said Masayuki Doshida,
senior market analyst at Rakuten Securities. 
    "Investors' risk-averse stance will be eased as long as the
Chinese market stabilizes."
     U.S. stocks rose by the most in nearly two weeks on Tuesday
after data showed business investment and the housing recovery
continued apace, reassuring investors worried about the Federal
Reserve's plans to reduce its massive monetary stimulus. 
    The Nikkei shed 0.7 percent on Tuesday to close at 12,969.34
as fears about stresses in China's banking system added to
concerns over the Fed's stimulus plans. The broader Topix
 dropped 1.0 percent to 1,078.66.
    The benchmark Nikkei has dropped 19 percent since reaching a
5-1/2-year high on May 23, hurt by slowing growth in China,
fears of a pullback in the Fed's stimulus and disappointment
over the Japanese government's recently unveiled growth
    The index is still up 25 percent this year, helped by Prime
Minister Shinzo Abe's sweeping fiscal and monetary expansionary
policies aimed at pulling the world's third-biggest economy out
of a two-decade long slump. 
> Wall Street rises on robust U.S. data after recent slide  
> Dollar rises for 5th straight session on data, Fed view 
> Yields rise before five-year note sale                   
> Gold slips as robust data boosts dollar                 
> Oil ends flat in thin trade, Brent/WTI spread narrows    
    Shareholders of Sprint Nextel Corp voted on Tuesday in
favour of a sweetened takeover offer from SoftBank, ending a
contentious takeover battle for the No. 3 U.S. wireless service
   Japan's SoftBank, which fought Dish Network Corp to
buy Sprint, now just needs approval from the Federal
Communications Commission, the U.S. telecommunications
regulator, to close the deal. 
    Japanese drugmaker Eisai is to stop selling its new epilepsy
therapy Fycompa in Germany - the biggest market for the product
- following a row over the price it can charge for the drug.
    Toshiba Corp may expand its NAND flash memory chip capacity
just one year after oversupply and a slump in prices prompted
Japan's leading chipmaker to slash production by 30 percent.

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