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Nikkei seen testing 53-mth high on Kuroda BOJ nomination news
February 24, 2013 / 11:20 PM / 5 years ago

Nikkei seen testing 53-mth high on Kuroda BOJ nomination news

TOKYO, Feb 25 (Reuters) - The Nikkei is expected to rally
strongly and test a 53-month high on Monday after sources said
Japan is likely to nominate Asian Development Bank President
Haruhiko Kuroda, an advocate of aggressive monetary easing, as
its next central bank chief.
    Exporters are likely to lead the gains after the yen 
hit a 33-month high of 94.61 yen to the dollar on Monday, while
financials and real estate companies will also be in focus as
they stand to gain the most from any reflationary policy.
    The Nikkei is likely to trade between 11,450 and
11,650, strategists said. Nikkei futures in Chicago 
closed at 11,500 on Friday, up 0.8 percent from the Osaka
 close of 11,410.    
    Sources said the government was also likely to nominate an
academic and a central banker to fill the two deputy governor
posts that open up on March 19.
    Earlier, the Nikkei newspaper said Prime Minister Shinzo Abe
will submit the nominations for Kuroda and the two deputy
governors to parliament this week. Kikuo Iwata, an academic
known as one of the most vocal advocates of bold monetary
expansion, was likely to be nominated as a deputy BOJ governor,
it said.   
    "The combination of Kuroda and Iwata is not perfect but it's
one of the best combinations. I think that will give positive
impact to the markets," said Takashi Hiroki, chief strategist at
Monex Inc.
    The Nikkei share average advanced 0.7 percent to 11,385.94
on Friday, while the broader Topix index added 0.1
percent to 963.48.
    The benchmark Nikkei has rallied about 31 percent since
mid-November, driven by a weaker yen after Abe called for the
BOJ to adopt more aggressive monetary policy in his election
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    Boeing Co on Friday gave U.S. aviation regulators its
plan to fix the volatile battery aboard its new 787 Dreamliner,
even though investigators have not yet determined what caused
the batteries to overheat on two planes last month.
    Sharp is unlikely to include a capital infusion from
Taiwan's Hon Hai Precision Industry Co Ltd in its
turnaround plan as talks between the two companies have hit a
snag, sources familiar with the matter said. 
    Toyota Motor Korea, Toyota Motor's South Korean sales
affiliate, will recall nearly 7,000 Lexus IS cars due to wiper
problems, South Korea's land and transport ministry announced on
    U.S. Affymax Inc. and Takeda Pharmaceutical said
they are voluntarily recalling all lots of anaemia treatment
Omontys (peginesatide) in the United States, due to reports of
serious hypersensitivity reactions, including some deaths.
    Toshiba will appoint Corporate Senior Executive Vice
President Hisao Tanaka as company president in June, sources
familiar with the matter told Reuters on Saturday.

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