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Nikkei seen under pressure after yen strengthens
July 16, 2012 / 11:39 PM / 5 years ago

Nikkei seen under pressure after yen strengthens

TOKYO, July 17 (Reuters) - Japan's Nikkei share average is
expected to come under pressure on Tuesday as the yen's gains
against the dollar during a market holiday the previous day
raise concerns over exporters.
     A surprise decline in U.S. June retail sales provided the
latest evidence of a slowing U.S. economy, boosting speculation
of stimulus measures from the Federal Reserve and undermining
the dollar.
    That lifted the yen to a one-month high of 78.688 per dollar
 on Monday.
    "Looking at the yen's moves, I feel that the market will
still be in a correction phase and could turn negative," said
Yutaka Miura, senior technical analyst at Mizuho Securities.
    Market players said the Nikkei was likely to trade between
8,650 to 8,800 on Tuesday. 
    Nikkei futures in Chicago closed at 8,735 on
Monday, up from Friday's close in Osaka of 8,700.
Japanese markets were closed on Monday for a national holiday.
    On Friday, the Nikkei crept up 0.1 percent to 8,724.12,
snapping a six-day losing streak after Chinese growth data
matched expectations, slightly easing fears about the state of
the global economy.
    Still, many investors are cautious, expecting companies to
downgrade their earnings guidance in coming weeks due to the
slowdown in the world economy.
    Japan's corporate earnings reporting season will get into
high gear from next week and market players are looking at U.S.
earnings after some high-profile disappointments last week. 
>US STOCKS-S&P 500 falls for seventh day in eight         
>Dollar pressured on rising speculation of US easing    
>Bond yields match record lows as data spurs bets on Fed 
>Gold edges up as dollar drops, all eyes on Bernanke    
>Oil higher on stimulus hopes, Iran tension              
    -- Aderans 
    Hair-salon operator Regis Corp said on Monday it
will sell Hair Club for Men and Women, its hair loss products
unit, to Aderans Co Ltd for $163.5 million in cash. 
    -- Toyota 
    A U.S. senator told federal safety regulators he was
concerned that they didn't go far enough in a probe that found
Toyota Motor Corp's electronics systems did not cause
unintended acceleration incidents. 
    -- Seiko Epson, Canon, Ricoh 
    Shares of laser and ink jet printer makers could come under
pressure after Lexmark International Inc on Friday
joined a host of technology companies that warned of falling
sales in Europe.

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