Nikkei seen down for 5th day on US fiscal worries, stronger yen

Fri Nov 9, 2012 5:04am IST

Related Topics

TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average is
expected to fall for a fifth-straight day on Friday after
worries about Washington's ability to find a timely solution to
the U.S. "fiscal cliff" heightened risk aversion and pushed down
Wall Street stocks.
    Exporters such as automakers and consumer electronics firms
may lead losses after the euro fell to a four-week low against
the yen on Thursday after the European Central Bank held
interest rates at a record low. 
    "The index has breached major support lines and there are
worries that exporters may not meet their full-year targets even
after they reduced their outlooks. The important point is
whether the recent weak-yen trend ends," said Hiroichi Nishi,
general manager at Nikko Cordial Securities.
    "But the volume of selling may not be that big today ahead
of the weekend," he added.
    Analysts said the Nikkei may trade between 8,700 and
8,800 on Friday. Nikkei futures in Chicago closed at
8,760, down 0.9 percent from the close in Osaka of
8,840.
    On Thursday, the benchmark dropped to 8,837.15, its lowest
close since Oct. 17, breaking below its 25-day moving average at
8,866.55 and its 13-week moving average at 8,877.34.
    It is up 4.5 percent this year, trailing a 10.9 percent rise
in the U.S. S&P 500 and a 10.8 percent gain for the
pan-European STOXX Europe 600 index.
    The broader Topix shed 1.4 percent to 735.35 on
Thursday.
> Wall St falls as U.S. fiscal worries weigh               
> Euro hits 2-month low vs dlr after ECB holds on rates  
> Bonds jump, spurred by fiscal cliff, Europe fears       
> Gold hits 3-week high as longs return on Obama victory 
> Oil rebounds after plunge, economy concerns limit rise  
    STOCKS TO WATCH  
    --Yakult Honsha Co 
    The beverage maker and Danone agreed to extend the deadline
for talks on the purchase of additional Yakult shares by French
food group Danone SA, the Nikkei business daily
reported.
    
    --Denso Corp 
    German auto parts supplier Bosch said it sold its
5 percent stake in Japanese peer Denso for roughly 1.1 billion
euros ($1.4 billion) to fund investments and strategic
acquisitions.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Banking Sector

REUTERS SHOWCASE

Regulatory Troubles

Regulatory Troubles

U.S. regulator alleges Dr Reddy's breached packaging rules  Full Article 

Defence Sector

Defence Sector

Indian firms tool up for defence orders on Modi's 'buy India' pledge  Full Article 

Factory Activity

Factory Activity

Economy fears deepen as August HSBC flash PMI at three-month low  Full Article 

Fed Minutes

Fed Minutes

Fed notes labor market progress, but not convinced yet - minutes  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage