TOKYO (Reuters) - Japan’s Nikkei average is expected to open higher on Wednesday, with exporters benefiting from more yen weakness after the Bank of Japan boosted its asset buying program and set an inflation target of 1 percent to pull the economy out of deflation.
“The exchange rates are getting favorable (for exporters,” said Eiji Kinouchi, chief technical analyst at Daiwa Securities.
The yen fell to its lowest in 3- months against the dollar. The U.S. currency was at 78.45 yen.
“Share prices have risen in Asian countries that have introduced inflation targeting,” Kinouchi said.
The Nikkei .N225 was likely to trade between 9,000 and 9,150, strategists said. Nikkei futures in Chicago closed at 9,100 on Tuesday, up 40 points or 0.4 percent from the Osaka close of 9,060.
The Nikkei advanced 0.6 percent to 9,052.07 on Tuesday, a fresh three-month closing high and touching its 200-day moving average, after the Bank of Japan unexpectedly eased monetary policy.
The broader Topix index .TOPX ended 0.7 percent higher at 786.80.
A trader said investors were likely to be reluctant to test the upside ahead of the euro zone finance ministers’ telephone conference call later in the day over a 130 billion euro ($171 billion) bailout for Greece to avert a default.
The ministers dropped plans for a face-to-face meeting on Greece’s new international bailout, saying political leaders in Athens had failed to provide the required commitment to reform. A Greek government source said conservative party leader Antonis Samaras was expected to deliver a letter of commitment to the country’s international lenders on Wednesday.
U.S. stocks cut losses to end little changed on Tuesday following the news.
The benchmark Nikkei is up 7 percent so far this year as a brightening outlook for the U.S. economy and an injection of 489 billion euros of three-year loans by the European Central Bank to boost liquidity outweighed disappointing Japanese corporate earnings.
Out of 155 Nikkei companies that have reported, 64 percent failed to meet market expectations, Thomson Reuters StarMine data showed. That compares with 32 percent for S&P 500 .SPX companies.
Reporting by Dominic Lau, Hideyuki Sano and Takeshi Yoshiike; Editing by Michael Watson