March 14, 2012 / 11:23 PM / 6 years ago

Nikkei seen trapped in range after vaulting 10,000

TOKYO, March 15 (Reuters) - Japan's Nikkei average is
expected to trade in a narrow range on Thursday after the
previous session's rally saw it close above 10,000 for the first
time in seven months, as technical indicators pointed to a
pullback.	
    A weaker yen, which hit a fresh 11-month low of 83.83 yen to
the dollar on Wednesday, was likely to offer support to Japanese
equities.    	
    The Nikkei was likely to trade between 9,950 and
10,100, strategists said. Nikkei futures in Chicago 
closed at 10,030 on Wednesday, up 20 points or 0.2 percent from
the Osaka close of 10,010.	
    "The market will stay at around the current level after the
big upside yesterday," said Takashi Hiroki, chief strategist at
Monex Inc.	
    Overnight, the U.S. S&P 500 broke a five-day streak of
gains, falling 0.1 percent as investors found little reason to
extend a rally that took it to four-year highs.	
    The benchmark Nikkei ended 1.5 percent higher at 10,050.52
on Wednesday, after intraday forays above that level in the
previous three sessions failed to hold until the close.	
    However, the Nikkei's close above the upper Bollinger Bands
and a bearish signal from slow stochastics suggest it could
retreat from here.	
    The broader Topix climbed 1.4 percent to 857.11 on
Wednesday.	
    The Nikkei is up 18.9 percent this year, buoyed by a run of
strong U.S. economic data and accommodative monetary policies by
global central banks that have sent investors back into risk
assets.	
    	
	
> Wall St retreats after rally, but Apple up again         	
> Dollar jumps vs euro and yen on yields, Fed stance     	
> Treasuries drop as Fed's outlook curbs safety bid       	
> Gold tumbles again on dashed QE hopes, technicals      	
> Oil falls on U.S. stock build, Iran eyed                	
    	
    STOCKS TO WATCH	
    -- SHARP CORP 	
    Sharp named the head of its global operations as president
to turn around a company facing a record annual loss, the latest
Japanese firm to shake up management after tumbling into the red
on slumping TV sales. 	
    -- NEC CORP 	
    NEC will propose drastic cost-cutting measures to its labour
union, including a temporary wage cut, in an effort to turn
around its business, the Nikkei newspaper reported.
 	
    -- MITSUBISHI UFJ FINANCIAL GROUP 	
    Mitsubishi UFJ Financial Group eyes a big hike in overseas
revenue, hiring staff in its European investment bank and
lending more to foreign customers as rivals retreat, a top
executive told Reuters. 	
    -- TOKYO ELECTRIC POWER CO 	
    The Japanese government-backed fund preparing to inject
capital into Tepco will consider using a mix of common stock and
a special class of shares that would have voting rights only if
the utility fails to meet its restructuring goals, the Nikkei
reported.	
    -- KOBE STEEL 	
    Kobe Steel Ltd will buy a small stake in Indian steel pipe
maker Man Industries and will jointly explore
opportunities in the global steel pipe market, the Indian
company said on Wednesday.

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