June 27, 2013 / 11:36 PM / 5 years ago

Nikkei set to rise to two-week high; Fed stimulus concern eases

TOKYO, June 28 (Reuters) - Japan's Nikkei share average is
expected to hit a two-week high on Friday, as Wall Street rises
on a tide of optimism that the Federal Reserve will not rapidly
rein in its stimulus measures and with a weaker yen likely to
lift exporters.
    Market players said the Nikkei was likely to trade between
13,300 to 13,500 after rising 3 percent to 13,213.55 on the
previous day.
    Nikkei futures in Chicago closed at 13,395, up 0.9
percent from the close in Osaka of 13,270.
    Analysts said the market would see early buying which would
lift the index above the 13,500-mark for the first time since
June 11, even though volume may be subdued in the absence of
firm catalysts.
    "Buying may be contained in short-covering," said Mitsushige
Akino, chief fund manager at Ichiyoshi Asset Management. "The
market wants to see April-June results, and investors want to
see the results of the upper house election to trade
    Overseas headwinds such as worries about the U.S. Fed's plan
to trim its stimulus and fears for the stability of the Chinese
banking system are easing, so the Nikkei may stay positive for
the time being, he said.
    Exporters are expected to attract buyers as the dollar is
comfortably trading above 98 yen.
    On Thursday, U.S. stocks rose after three Fed policymakers
sought to downplay the notion that the central bank would bring
an imminent end to its bond-buying programme.

> Wall St rallies for third day as Fed concerns fade       
> Dollar dips vs euro as Fed officials dampen 'taper' talk
> Prices gain after 7-year debt sale                      
> Gold sinks below $1,200 for first time in nearly 3 years
> Oil rises amid talk Fed will continue stimulus for now
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