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Nikkei set to fall sharply on euro worries, US jobs
May 6, 2012 / 11:26 PM / 5 years ago

Nikkei set to fall sharply on euro worries, US jobs

TOKYO, May 7 (Reuters) - Japan's Nikkei share average is
expected to open sharply lower on Monday after elections in
France and Greece raised concerns over the euro zone's ability
to carry out further austerity measures and U.S. jobs data came
in weaker than expected.	
    "It's going go be ugly," a trader at a foreign bank said.	
    "You have disappointing non-farm payroll numbers coming out
of the U.S. You have the French election, you have the Greek
elections."	
    The Nikkei was likely to trade between 9,050 and
9,200 after closing up 0.3 percent at 9,380.25 on Wednesday,
strategists said. The Japanese market was closed on Thursday and
Friday for national holidays.	
    Nikkei futures in Chicago closed at 9,150 on
Friday, down 250 points or 2.7 percent from the Osaka 
close of 9,360 on Wednesday.	
    French voters ousted incumbent Nicolas Sarkozy, a key 
architect of bailouts for indebted countries and an advocate of
austerity measures, in a presidential election on Sunday.
 	
    Greek voters enraged by economic hardship caused by the
terms of an international bailout also turned on ruling parties
in an election on Sunday, putting the country's future in the
euro zone at risk and threatening to revive Europe's debt
crisis. 	
    Adding to the negative sentiment, U.S. employers cut back on
hiring in April, spurring concerns that the U.S. economy is
losing momentum. 	
  	
    	
> Wall St posts worst week of 2012 as job growth slows      	
> Dollar drops on jobs data, euro sinks before elections  	
> Treasuries gain as weak U.S. jobs data stirs worry       	
> Gold rises as jobs data renews Fed easing hopes         	
> Oil dives 2.5 pct, biggest weekly drop since November    	
    	
    STOCKS TO WATCH	
    --NISSAN MOTOR CO 	
    Renault and Japanese partner Nissan moved to
expand in the growing Russian car market on Thursday with a $750
million deal that would give the French manufacturer effective
control of Lada maker OAO AvtoVAZ. 	
    --TRADING COMPANIES	
    Japan's top trading companies have emerged as frontrunners
in the race to buy Gavilon as the U.S. grain and energy trader
seeks final bids this week, according to several people familiar
with the matter. 	
   Marubeni Corp, Mitsubishi Corp and Mitsui &
Co have been evaluating bids for all or part of
Gavilon, even as they consider the valuation of over $5 billion
by the company's owners expensive, the sources said.

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