Reuters logo
Nikkei seen capped by disappointment U.S. data
July 2, 2012 / 11:31 PM / 5 years ago

Nikkei seen capped by disappointment U.S. data

TOKYO, July 3 (Reuters) - Japan's Nikkei share average is
likely to be capped on Tuesday after surprise weakness in U.S.
manufacturing data, although renewed speculation the U.S.
Federal Reserve may step in to boost growth could offer support.
    U.S. manufacturing shrank in June for the first time in
nearly three years as new orders plummeted, with the Institute
for Supply Management index of national factory activity falling
to 49.7 from 53.5 the month before, missing expectations of
    "As Europe seems to be stabilising for now, the focus is now
on the state of the global economy but the ISM figures were
terrible," said Kenichi Hirano, market analyst at Tachibana
    "Still, what is equally surprising is the resilience of U.S.
shares, which suggests investor sentiment remained strong
because they link bad data to the chance of the Fed's QE
(quantitative easing)," he added.
    The Nikkei is expected to trade between 8,950 and 9,100 on
Tuesday. On Monday, it closed almost flat at 9,003.48,
after hitting a two-month high of 9,103.79.
    Nikkei futures in Chicago closed at 9,040, up
slightly from the close in Osaka of 9,030.
    Trading on Tuesday was likely to capped at around 9,100,
which should draw selling, including from Japanese retail
investors, market players said.
>Wall St shakes off factory data; S&P, Nasdaq rise   
>Euro, dollar fall after U.S. factory data         
>Bonds rise on global growth worries                
>Gold inches up after weak U.S. manufacturing data 
>Oil slips on more signs of slowing economy         
    -- Kawasaki Kisen 
    The shipping company said on Monday it would raise 28.6
billion yen by issuing up to 200 million new shares, for capital
spending. The planned share issue will increase the total number
of shares by 26 percent.
    -- Fast Retailing 
    The operator of the Uniqlo casual clothing chain said on
Monday its same-store sales in June fell 7 percent from a year
ago as a typhoon and cool weather hurt sales of summer clothing.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below