Li Keqiang's India Visit
Chinese Premier Li Keqiang, smiling and effusive, was out to smooth ruffled feathers in India this week, promising to ease tensions and increase trade between Asia's fastest growing economies in his first trip overseas since taking office. Full Article | Slideshow
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Nikkei slips as euro zone leaders bicker
By Sophie Knight TOKYO, June 29 (Reuters) - Japan's Nikkei share average dipped in early trade on Friday after the first day of an EU summit was marred by disagreement over measures to tackle the euro zone debt crisis, and risk appetite waned after Thursday's robust gains. The Nikkei slipped 0.4 percent to 8,842.51, leaving it 12.3 percent down so far in the second quarter, which ends later on Friday, wiping out much of the first-quarter's 19.3 percent surge, the biggest first-quarter gain in 24 years. Nearly all sectors suffered shallow losses, but the securities sector bucked the trend, driven up 1.8 percent by Nomura Holding Inc's 3.2 percent gain on measures to resolve an insider trading scandal. "We're likely to see the Nikkei open weak but return to positive territory later in the day on short-covering," said Masayuki Doshida, senior market analyst at Rakuten Securities, adding that the market had already priced in an inconclusive end to the EU summit. "But if they don't even agree on the details of the Spanish bank bailout and hint that the ECB will drop rates, there will be disappointment," he said. Euro zone leaders are to conclude the two-day meeting later on Friday to discuss how to tackle an expanding debt zone crisis. On Thursday, Italian and Spanish leaders refused to sign a growth package until Germany agreed to a short-term plan to reduce the cost of their credit. Investors welcomed news that Nomura Holdings Inc could halt some operations and slash top executives pay, as it attempts to solve an insider trading scandal, according to sources. A management committee is to meet later on Friday to discuss the changes. ID:nL3E8HS4HE] Nissan Motor Co Ltd slipped 0.7 percent after Nomura Securities cut its earnings forecasts for the automaker and lowered its price target to 1,050 yen from 1,200, citing a strong yen and the startup costs for the Altima model in the United States. Hard drive makers sold off after U.S. manufacturer Hutchinson Technology dropped 12 percent due to disappointing third quarter results and Seagate Technology Plc was downgraded on weakening demand. TDK Corporation shed 4.2 percent to an eight-month low as the second-most traded stock by turnover on the main board, while Nidec Corp lost 1 percent. Suzuki Motor Corp gained 1.9 percent after announcing that it is planning to increase its capital expenditure by over 60 percent, spending an average of 200 billion yen ($2.5 billion) through 2016, according to the Nikkei business daily. The broader Topix was flat after starting the morning lower, and some market players expected the Nikkei to swing into positive territory as investors indulge in "window dressing" as the month and second quarter draw to a close. The same factors buoyed the index to a 1.7 percent gain on Thursday. However, trading has been thin recently, making the index's gains less significant. Some market players fear it could suffer a reversal in early July as concerns about slowing global growth and the intractable euro zone crisis creep back in. "Investors are feeling pessimistic about next month's IMF world economic outlook figures, which will likely paint a pretty dim picture," said Fujio Ando, managing director of Chibagin Asset Management. "However, Japan's growth forecast is likely to be revised upwards, and second quarter domestic results will look good compared to last year's post-quake period."
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