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Nikkei set to rise on Wall St gains; emerging market moves eyed
August 25, 2013 / 11:37 PM / 4 years ago

Nikkei set to rise on Wall St gains; emerging market moves eyed

TOKYO, Aug 26 (Reuters) - Japan's Nikkei share average is
set to edge up, buoyed by Wall Street gains and the trend for a
weaker yen, but trading may be subdued as concerns about a
tapering of U.S. stimulus measures roil emerging markets.
    Market players said the Nikkei was likely to trade between
13,550 and 13,850 on Monday after rising 2.2 percent to
13,660.55 on Friday. The index may trade above resistance at
13,781.32, a 38.2 percent retracement of the slide from its May
high to its low in June.
    Nikkei futures in Chicago closed at 13,735, up 0.3
percent from the close in Osaka of 13,700.
    The dollar slipped 0.1 percent to 98.68 yen after
hitting a three-week high of 99.15 yen last Friday, but analysts
said exporters are likely to remain resilient as long as the
trend for a weaker yen holds intact.
    "Amid a lack of fresh catalysts, investors are likely to
monitor the dollar-yen levels today, and as long as the dollar
trades above 98 yen, the Nikkei is likely to be supported by
exporters," said Kenichi Hirano, a strategist at Tachibana
Securities.
    However, he cautioned that persistent concerns over a
tapering of the U.S. Federal Reserve's stimulus, perhaps as
early as next month, could draw more capital out of emerging
nations.
    "Share moves in Shanghai, Indonesia and India could set a
direction in the Tokyo market later in the day, so we need to be
careful of volatility in Nikkei futures," he said.
    On Friday, Wall Street was helped by gains in Microsoft
 after the head of the world's largest software company,
Steve Ballmer, announced he will retire within 12 months.
    
> Wall St ends up after Nasdaq outage, Microsoft jumps     
> Dollar slides after disappointing U.S. housing data    
> Yields fall as weak housing sales raise mortgage fears  
> Gold up 1.6 pct, near $1,400, on poor U.S. home sales  
> Oil climbs, gasoline up on East Coast refinery problems 
    STOCKS TO WATCH
    
    --Toshiba Corp, Panasonic Corp 
    Toshiba Corp, U.S. private equity firm Kohlberg Kravis
Roberts & Co (KKR) and a consortium including Bain
Capital are expected to participate in the final round of bids
next week for Panasonic Corp's healthcare business, a deal that
could fetch as much as $1.5 billion, sources with knowledge of
the matter said on Friday.

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