TOKYO (Reuters) - Japan’s Nikkei average is likely to rise on Tuesday, rebounding from a 10-week closing low booked the day before, with exporters regaining ground after U.S. stocks staged a late-day comeback on bargain hunting in beaten-down shares.
Sharp Corp 6753.T may draw attention after a company executive told Reuters that the world's No.3 maker of solar cells sees revenue from its cell business growing more than 10 percent this financial year on strong German demand.
“The market will likely rebound on short-covering, with technicals signaling it might be oversold after the Nikkei lost nearly 4 percent in the past two days,” said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
“After an initial rebound, the main focus will be on moves in the currency market, particularly euro/yen, and Asian stocks. Many Japanese exporters have set their euro/yen assumption rates around 120-125 yen and it would be better if the currency pair came closer to these levels.”
Nikkei futures traded in Chicago closed at 10,295, up 0.5 percent from the Osaka close, pointing to a slightly higher start.
The benchmark Nikkei .N225 is likely to move between 10,250 and 10,400, market players said. It slid 2.2 percent the previous day to 10,235.76, its lowest finish since March 4.
The euro was trading around 114.75 yen in early Asian trade, after falling to the 112 yen level the previous day.
The Standard & Poor's 500 Index .SPX added 0.1 percent.
STOCKS TO WATCH
-- Nippon Steel Corp 5401.T
-- Toyota Motor Corp 7203.T
Toyota has decided to raise in October the price of steel that it provides to its parts suppliers, moving away from the current trend of setting the price in April, the Nikkei reported.
Toyota, which purchases steel for itself and its suppliers to bolster its purchasing volume and bargaining power, has decided to raise the price in October from April-levels to help accommodate the price demands by steelmakers, the paper said.
-- Inpex Corp 1605.T, other energy-linked shares
U.S. oil prices fell a fifth straight session and settled at a five-month low on Monday as the dollar surged against the euro and energy markets fretted over swollen U.S. oil inventories and signs that China’s growth may have peaked.
Reporting by Aiko Hayashi; Editing by Chris Gallagher
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