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Nikkei may open lower but positive global sentiment seen underpinning
July 9, 2013 / 11:51 PM / 4 years ago

Nikkei may open lower but positive global sentiment seen underpinning

TOKYO, July 10 (Reuters) - Japan's Nikkei share average may
open lower on Wednesday after speculative trade drove it higher
in the previous session, but underlying positive sentiment from
Wall Street's gains and a weak yen could yet again propel the
market higher later in the day.
    Market players said the benchmark Nikkei was likely
to trade between 14,300 to 14,600 on Wednesday.
    On Tuesday, the Nikkei jumped 2.6 percent to 14,472.90, the
highest closing level since May 24, while the broader Topix
 index gained 2.1 percent to 1,196.89.
    Nikkei futures in Chicago closed at 14,415 on
Tuesday, down 0.3 percent from the close in Osaka of
    "The market would see the gains in U.S. stocks and the
continued weak yen trend as positive," said Kenichi Hirano, a
strategist at Tachibana Securities.
    "But I think the Nikkei could open lower as yesterday's
last-minute gains in the index were driven by speculative
    The Japanese market has recently seen volatile trading as
investors fretted about slowing growth in China and the prospect
of the U.S. Federal Reserve rolling back its stimulus later this
    A credit squeeze in China's money markets and a string of
data underscoring a slowing down in the world's second largest
economy have also dented investor sentiment.
    Still, strong U.S. data has supported a global market rally
in recent days, which has benefited Japanese equities.
    U.S. stocks rose for the fourth session in a row on Tuesday
as investors bet that companies will be able to surpass the low
bar set for earnings season.
    The yen was quoted at 101.17 to the dollar in early
Asian trade on Wednesday, according to EBS data.

> Wall St rises for 4th day on earnings hope, FedEx jumps   
> U.S. dollar rallies on contrasting central bank views   
> U.S. bond prices end little changed                      
> Gold rises 1 pct on physical buying, China inflation    
> Oil prices end moderately higher, stifled by dollar      
    Supermarket chain operator Aeon on Tuesday reported a record
operating profit of 34.7 billion yen ($343 million) for the
first quarter ended May 31, helped by solid financial and
supermarket businesses. 

    The Nikkei newspaper said the carbon fibre maker's operating
profit is expected to rise roughly 10 percent on the year to
about 19 billion yen for the quarter ended June 30, thanks in
part to higher sales in its main textile business.
    Japan may restart several reactors shut down by the
Fukushima nuclear crisis in about a year, a senior regulator
said in an interview on Tuesday, a day after new safety rules
went into effect designed to avoid a repeart of the disaster.
    Separately, TEPCO, the operator of the Fukushima station,
said that an observation well between the damaged reactor No. 2
and the sea showed levels of radioactive caesium-134 were 90
times higher on Monday than they had been the previous Friday.

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