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Nikkei seen range trading, China-related plays in focus
September 17, 2012 / 11:13 PM / 5 years ago

Nikkei seen range trading, China-related plays in focus

TOKYO, Sept 18 (Reuters) - Japan's Nikkei average is likely
to trade in a narrow range on Tuesday as China-related companies
are caught up in mounting tension between China and Japan's over
a territorial dispute, although weaker yen will offer support to
the market.
    The Nikkei was likely to trade between 9,050 and
9,250, strategists said, after rallying 1.8 percent on Friday to
9,159.39, its highest closing level in three weeks.
    The broader Topix index climbed 1.7 percent to
756.88 on Friday. Monday was a public holiday in Japan.
    "The yen depreciation will be a positive factor. On the
other hand, the bad news is China where demonstrators attacked
Japanese companies ... Panasonic factory and a lot of department
stores," said Takashi Hiroki, chief strategist at Monex Inc.
    The yen was quoted at 78.695 on Tuesday after falling
to a one-week low of 78.93 on Monday, well off a seven-month
high of 77.13 hit on Thursday after the U.S. Federal Reserve
announced the launch of another round of stimulus.
    Nikkei futures in Chicago closed at 9,145 on
Monday, up 0.7 percent from the Osaka close of 9,080 on
    Apple Inc component suppliers could also be in
focus after the U.S. company booked orders for over two million
iPhone 5 models in the first 24 hours, reflecting a
higher-than-expected demand for its new smartphone and setting
it up for a strong holiday quarter. 
    The Nikkei is up 8.3 percent so far this year.
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    Some major Japanese brandname firms announced factory
shutdowns in China on Monday and urged expatriates to stay
indoors to avoid what could be more angry protests over a
territorial dispute between the two countries. 
    Companies affected included Nissan Motor Co, Canon
Inc, Honda Motor Co, Fast Retailing's 
Uniqlo, Mazda Motor Corp and Panasonic Corp.
    --AEON CO LTD 
    Shares of Japanese-related retailers came under pressure on
Monday on worries about the impact of anti-Japan protests on
their business, with department store operator Aeon Stores (Hong
Kong) Co Ltd, controlled by Aeon Co Ltd, falling to
its lowest in seven months.

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