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Nikkei expected to rebound on short-covering on exporters
February 26, 2013 / 11:20 PM / in 5 years

Nikkei expected to rebound on short-covering on exporters

TOKYO, Feb 27 (Reuters) - Japan's Nikkei share average is
expected to rebound on Wednesday after falling sharply on the
previous day, as investors buy back export-oriented stocks after
hopes for continuing Federal Reserve stimulus boosted Wall
    Market players said the Nikkei was likely to trade between
11,300 and 11,500 after dropping 2.3 percent to 11,398.81 on
Tuesday on concerns an inconclusive election in Italy could
reignite the euro zone debt crisis. The index touched a 53-month
high on Monday.
    Nikkei futures in Chicago closed at 11,375, down
0.3 percent from the close in Osaka of 11,410.
    Analysts said Italy's election outcome has dampened
sentiment, but Japanese shares were supported by hopes the
government will nominate Asian Development Bank President
Haruhiko Kuroda, an advocate of monetary easing, as its next
central bank chief. 
    "Even if there are negative factors from overseas
continuting to hurt sentiment, the Nikkei should be supported
above its 25-day moving average (of 11,170) for the time being,"
said Yutaka Miura, a senior technical analyst at Mizuho
Securities. "For today, short-covering may lift the market
especially from buying in exporters and financials."
    U.S. stocks climbed as Federal Reserve Chairman Ben Bernanke
strongly defended the Fed's bond-buying stimulus, easing worries
that policymakers might be getting cold feet about continuing
the extraordinary measures to support the economy.
    In Europe, a closely watched gauge of European stock market
volatility hit a 2013 high after the muddy election outcome in
Italy raised fresh concern about the outlook for the euro zone's
debt crisis.
> Wall Street rebounds on Bernanke comments, data          
> Euro flat after seesaw session; Bernanke defends bond
> Yields near 1-month lows as Bernanke defends bond buys  
> Gold gains most in 3 months as Bernanke defends policy 
> Brent crude oil drops under $113 on Italian vote fears  
    --Itochu Corp 
    Itochu will form a partnership with European oil trading
house Vitol Group to export liquefied petroleum gas from the
United States to Japan, the Nikkei reported citing unnamed
company sources.

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