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Nikkei set to open lower but downside may be limited
August 18, 2013 / 11:31 PM / 4 years ago

Nikkei set to open lower but downside may be limited

TOKYO, Aug 19 (Reuters) - Japan's Nikkei average is expected
to open lower on Monday, tracking weakness on Wall Street and
after losses in the previous two sessions, but the downside may
be limited by a weakening yen.  
    The benchmark Nikkei was likely to trade between 13,550 and
13,750, strategists said, while Nikkei futures in Chicago on Friday closed at 13,625, down 0.3 percent from the
Osaka close of 13,670.
    "The Nikkei may open weaker and then struggle to find a
direction amid a lack of trading cues," said Hiroaki Hiwada, a
senior strategist at Toyo Securities.
    "But its downside will likely to be limited as the index
already fell two sessions in a row and the yen was priced stable
against the dollar."
    The Nikkei, which has fallen 2.9 percent over the
last two sessions, shed 0.8 percent on Friday to 13,650.11,
breaking below the bottom of the Ichimoku cloud of 14,179.23.
The broader Topix dropped 0.8 percent to 1,142.65.
    U.S. stocks fell slightly on Friday, and the Dow industrials
 posted the biggest weekly loss this year as rising bond
yields hurt high-dividend shares and earnings from retailers
disappointed investors.
    The yen was last quoted at 97.75 yen to the dollar,
further pulling away from a seven-week low around 95.81 yen
touched on August 8.
    The benchmark Nikkei is up 31 percent this year, spurred by
the government's expansionary fiscal policy and the Bank of
Japan's aggressive monetary stimulus.

> Wall St slips, Dow posts biggest weekly loss of 2013      
> Dollar rallies, reversing course, but doubts remain     
> U.S. bond market on track for worst week in two months   
> Gold posts 5 pct weekly gain on economic uncertainty    
> Oil ends up for 6th straight session, Egypt supports     
    Kawasaki Heavy will team up with Rolls-Royce PLC 
to develop a new type of aircraft engine that is 30 percent more
fuel efficient than conventional jet engines, the Nikkei
business daily said on Monday.
    Discount store operator Don Quijote forecast an operating
profit of 33.5 billion yen for the financial year through June
2014, up 3.5 percent year-on-year but below a consensus estimate
of 36.1 billion yen.

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