TOKYO, Nov 9 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.
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With the crucial GDP data scheduled to be announced along with key corporate results, volatility is expected to prevail in the upcoming week. Disappointment on these fronts may push the Nifty down to the 7,200-7,500 range. Once we witness stability and consolidation, investors should increase their exposure, says Ambareesh Baliga. Full article