August 26, 2013 / 11:33 PM / 4 years ago

Nikkei set to fall on weak Wall St, trading seen subdued

TOKYO, Aug 27 (Reuters) - Japan's Nikkei share average is
set to open lower on Tuesday, tracking a decline on Wall Street,
with investors likely to remain sidelined amid a lack of trading
    The benchmark Nikkei is likely to trade between
13,400 and 13,700, strategists said, after shedding 0.2 percent
to 13,636.28 on Monday. The broader Topix eased 0.1
percent to 1,140.00.
    Nikkei futures in Chicago closed at 13,540 on
Monday, down 0.8 percent from the Osaka close of 13,650.
    "The Tokyo market is likely to start lower, tracking cues
from Wall Street. There's some possibility of another volatile
day if speculators decide to attack the market, as the volume is
likely to remain very low," said Mitsushige Akino, chief fund
manager at Ichiyoshi Asset Management. 
    "Most investors, I would say 90 percent of players, would
prefer to wait and see today."
    U.S. stocks had traded higher for most of the session on
Monday, as sharply weaker orders for long-lasting manufactured
goods eased investors' worries of a cutback in the Federal
Reserve's economic stimulus.
    But they turned negative in the last hour of trading after
U.S. Secretary of State John Kerry called Syria's use of
chemical weapons "undeniable." 
    Investors are also watching how other Asian stocks will
fare, especially in India and Indonesia, Ichiyoshi's Akino said.
    Emerging markets in the region have had a torrid time in
recent weeks on concerns about a turn in Fed policy. 
    The yen was last traded at 98.39 yen against the
dollar. The greenback is hovering below a three-week high of
99.15 yen touched on Friday.
    The Japanese currency is down 13 percent versus the dollar
for the year, weighed by the Bank of Japan's radical monetary
stimulus launched in April to end years of stubborn deflation
and foster growth.
    A weaker yen sharpens Japanese exporters' competitive edge
in global markets and boosts their dollar earnings when
    The Nikkei is up 31 percent this year, spurred by the
Japanese government's fiscal expansionary policy and the Bank of
Japan's aggressive monetary stimulus.
> Wall St falls after Kerry blasts Syria on chemical weapons 
> Dollar edges up as Fed debate shifts to size of pullback 
> Government bond prices gain on weaker economic data      
> Gold breaks above $1,400 on weak U.S. durable goods data 
> Brent hits 5-mth high on Syria, settles lower on 
     ANA will acquire a 49 percent stake in Asian Wings Airways,
a mid-tier airline in Myanmar, marking the first such investment
by a foreign firm since the country began democratising in 2011,
the Nikkei newspaper said.

    Mitsubishi Heavy said on Monday it will open an office in
Basra, Iraq's second-largest city, on September 1, aiming to
respond swiftly to emerging large-scale social infrastructure
improvement projects in the country.
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