Nikkei set to rise, large buy orders from foreign brokers

Mon Nov 19, 2012 5:09am IST

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

TOKYO, Nov 19 (Reuters) - The Nikkei average is expected to
open higher on Monday on growing expectations that Japan's main
opposition party will win next month's election and increase
pressure on the central bank to ease monetary policy.
    A call by Liberal Democratic Party (LDP) leader Shinzo Abe
for the Bank of Japan to further stimulate the ailing economy,
including setting interest rates to zero or below zero, has
weakened the yen and boosted the shares of Japanese exporters.
    The yen was trading at 81.43 yen to the dollar on Monday,
near a 6-1/2-month low of 81.465 hit on Thursday. A weaker yen
allows exporters to earn more when they repatriate overseas
earnings, as well as boosting their competitiveness.    
    The Nikkei was likely to trade between 9,000 and
9,150 on Monday, strategists said, after rallying 4.2 percent in
the previous two sessions.
    Nikkei futures in Chicago closed at 9,090 on
Friday, up 0.9 percent from the Osaka close of 9,010.
    Foreign brokerages put in a net buy order of 11.3 million
shares, the largest net purchase since Sept. 19.
    "The market's bullish sentiment will continue today," said
Takashi Hiroki, chief strategist at Monex Inc.
    Hiroki said sentiment had changed as trading volume hit an
eight-month high on Friday and any short-term profit-taking
would likely to be limited.
    "Today's point is whether the Nikkei will break above the
200-day moving average (at around 9,072)," he said.
    A public opinion poll showed on Sunday that the LDP has
maintained its lead over the ruling party, strengthening its
case to reclaim control of the government in the December
election after a three-year absence. 
    On Friday, the Nikkei climbed 2.2 percent to 9,024.16,
hitting a two-week closing high. The broader Topix 
advanced 1.9 percent to 751.34.
    The benchmark Nikkei is up 6.7 percent this year, slightly
trailing an 8.1 percent rise in the U.S. S&P 500 and a
7.5 percent gain in the pan-European STOXX Europe 600 
index.
        
> Washington's positive tone cheers Wall St for a day       
> Yen steadier after hammering, still fragile             
> Treasuries on U.S. budget talks, Israel worries          
> Gold down for week on recession, fiscal crisis fears    
> Oil rises on Middle East conflict, Gulf of Mexico fire   
    
    STOCKS TO WATCH
    --JAPAN TOBACCO INC 
    Japan's Ministry of Finance said on Friday it would not sell
shares in Japan Tobacco before the end of December, delaying the
raising of funds for rebuilding areas hit by last year's
earthquake and tsunami. 
    Separately, the company said on Friday it will buy Egypt's
Al Nakhla Tobacco Company, a maker of waterpipe tobacco, for an
undisclosed sum. 
    --KOMATSU LTD 
    Komatsu and China's Sinomach are to battle it out
to buy German machine tool maker MAG Group, three
sources familiar with the sale process told Reuters on Sunday.
 
    --HOYA CORP, SEIKO EPSON CORP 
    Hoya said on Friday it will take control of Seiko Epson's
eyeglass lens development and manufacturing business as part of
a partnership to expand sales of eyewear products globally.
 
    --NIDEC CORP 
    Nidec is interested in Finmeccanica's power
engineering unit AnsaldoEnergia and is ready to invest 1 billion
euros ($1.27 billion) to expand its presence in Europe,
president Shigenobu Nagamori told Il Sole 24 Ore on Saturday.
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

REUTERS SHOWCASE

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Global Economy

Global Economy

Chinese factories stalling as euro zone business picks up  Full Article 

Rupee Falls

Rupee Falls

Rupee falls for third day; foreign fund inflows key.  Full Article 

Record High

Record High

BSE Sensex hits record high for third straight day.  Full Article 

M&M Upgraded

M&M Upgraded

Credit Suisse upgrades Mahindra & Mahindra to 'outperform'  Full Article 

Breakingviews

Breakingviews

Manchester United’s crisis has silver lining  Full Article 

Reuters India Mobile

Reuters India Mobile

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