March 18, 2013 / 11:26 PM / 5 years ago

Nikkei set to rebound from Monday's steep loss; focus still on Cyprus

TOKYO, March 19 (Reuters) - Japan's Nikkei average is
expected to open higher on Tuesday, rebounding from its biggest
one-day percentage drop in 10 months after a proposed bailout
for Cyprus raised concern about the stability of Europe's
banking sector.  
    The Nikkei is likely to trade between 12,250 and
12,450, strategists said, while Nikkei futures in Chicago closed at 12,345 on Monday, up 1.4 percent from the
Osaka close of 12,170.
    "Stocks that dropped yesterday are expected to be in demand
today," said Masayuki Doshida, a senior market analyst at
Rakuten Securities. He expects investors to be buying back what
they sold on Monday rather than adding new positions.
    The Nikkei shed 2.7 percent to 12,220.63 on Monday to a
one-week low, while the broader Topix index lost 2.2
percent to 1,028.34.
    Overnight losses in European markets and Wall Street were
not as severe as in Tokyo on Monday, which should help ease
investors' concerns. Europe's FTSEurofirst 300 was down
0.3 percent and U.S. S&P 500 lost 0.6 percent.
     "The market will be nervously watching and it will be
sensitive to news from Europe and foreign exchange movements,"
Doshida said.
    Euro zone ministers urged Cyprus to let smaller savers
escape a levy on bank deposits before a parliamentary vote on
Tuesday that will either secure the island's financial rescue or
threaten default. 
    Investors will also keep an eye on the U.S. Federal Reserve
two-day policy-setting meeting starting later in the day and the
change of leadership at the Bank of Japan this week, he said. 
     The BOJ bought 28.7 billion yen ($302 million) worth of
exchange-traded funds on Monday to support the market.
    The benchmark Nikkei has rallied 41 percent since
mid-November after Prime Minister Shinzo Abe embarked on
aggressive fiscal expansionary and monetary easing policies to
reignite the long-stagnant economy.
> Wall St ends lower on angst about Cyprus bailout plan     
> Euro falls broadly on Cyprus fears                      
> Treasuries hit lowest in 1-1/2 weeks on Cyprus bank fears 
> Gold hits 2-1/2-wk high; Cyprus spurs safe haven buying 
> Brent crude down on Cyprus fears, bounces off 3-mth low  

    Boeing Co's goal to have its grounded 787 Dreamliner
jets back in the air within weeks is a best-case scenario and
too uncertain for the aircraft's biggest customer to plan the
plane's operational return to service. Ÿ
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below