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Nikkei likely to open lower on China growth fears
March 20, 2012 / 11:28 PM / 6 years ago

Nikkei likely to open lower on China growth fears

TOKYO, March 21 (Reuters) - Japan's Nikkei average is
expected to open lower on Wednesday after U.S. stocks fell
overnight on fresh concerns over China's economic growth, though
the softer yen is likely to underpin market sentiment and
support the index. 	
    Market players said the Nikkei was likely to trade between
10,050 to 10,200 on Wednesday after Nikkei futures in Chicago closed at 10,045, down 35 points, or 0.35 percent, from
Monday's Osaka close of 10,080. There was a public
holiday in Japan on Tuesday.	
    "The focus today will be on whether the Nikkei can hold the
10,100 level in the morning session and then to see how it
reacts to Chinese markets in the afternoon," said Masayuki
Doshida, senior market analyst at Rakuten Securities.	
    "Growth worries about China will lead to selling of energy
stocks and commodity related shares, as well as stocks that have
high exposure to China's economy such as Komatsu and Fanuc,"
said Doshida.	
    Wall Street slipped overnight after global mining giant BHP
Billiton said it saw signs of "flattening" iron-ore demand from
China, the world's top metals consumer, weighing down commodity
markets and energy shares.	
    But strategists said the softer yen against the euro and the
steady dollar/yen rate would likely to support the overall
market. 	
    The euro was last trading at 110.710 yen on the
EBS platform, while the greenback was at 83.67 yen. 	
    Also offsetting concerns about China's growth, U.S. economic
data remained robust in February, with permits for U.S.
homebuilding nearing a 3-1/2 year high last month even as
groundbreaking activity slipped, suggesting a nascent recovery
in the housing sector was still on track. 	
    On Monday, the benchmark Nikkei closed 0.1 percent
higher at 10,141.99 after touching an 8-1/2-month intraday peak
of 10,172.64, while the broader Topix index added 0.2
percent to 868.35.	
    	
> Wall St slips on China, but retailers offset losses     
> Dollar rises as China fears boost safe-haven allure   
> Long bond yields fall, but higher yields may lie ahead 
> Gold falls as economic optimism boosts dollar         
> Oil falls as Saudi Arabia seeks to calm markets        	
    STOCKS TO WATCH	
    -- NISSAN MOTOR CO 	
    Nissan's revived Datsun brand will target increasing sales
in Indonesia, India and Russia, the firm's chief executive told
reporters in Jakarta on Tuesday. Nissan said it plans to invest
$400 million in Indonesia over the next two years, double hiring
by 2014 and increase its dealerships in Southeast Asia's largest
economy. 	
    Separately, Chinese media said on Monday, Nissan and
Dongfeng Motor Group Co will spin off the heavy truck
segment of their China venture to Dongfeng's state parent,
paving the way for local production of Renault and Infiniti
cars. 	
    --NISSHIN STEEL, NIPPON METAL 	
    Nisshin Steel Co will acquire Nippon Metal Industry Co in a
stock swap deal valued at $180 million and plan to combine their
businesses on Oct. 1 under a holding company, the firms said in
a statement on Monday. 	
    --MITSUBISHI MOTORS CORP 	
    Car maker Mitsubishi Motors plans to double production at
its automobile plant in Illinois to 70,000 vehicles per year,
the Nikkei business daily Nikkei reported on Tuesday.
 	
    --OLYMPUS CORP 	
    Scandal-hit Olympus will unveil three new products,
including endoscopes on Wednesday, its first major product
launch since a $1.7 billion accounting fraud last year
threatened the 92-year-old firm's survival.

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