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Nikkei seen trapped in range after recent rally
August 21, 2012 / 11:22 PM / 5 years ago

Nikkei seen trapped in range after recent rally

TOKYO, Aug 22 (Reuters) - Japan's Nikkei share average is
expected to hold in a range on Wednesday, as U.S. stocks fell
despite mounting expectations the European Central Bank will
soon act to tackle the region's debt crisis.
    "Today will likely be a rangebound trading day, with the
stronger euro and weaker yen in focus," said Hiroichi Nishi,
equity general manager at SMBC Nikko Securities.
    The Nikkei was expected to trade between 9,100 and
9,250, strategists said, while Nikkei futures in Chicago closed at 9,155 on Tuesday, up 0.05 percent from the
Osaka close.
    On Tuesday, the Nikkei retreated from a three-month high to
9,156.92 but held above its 26-week moving average at 9,149.50.
The broader Topix index inched up 0.1 percent to 765.26.
   Expectations that the ECB would take bold action to contain
the euro zone debt crisis have helped the Nikkei rebound 10
percent from a seven-week low touched on July 25. The Nikkei is
up 8.3 percent so far this year.   
   The euro rose as high as 99.18 yen in overnight
trade, its strongest since early July. It was last trading at
    Goldman Sachs reiterated its six- and 12-month Topix targets
of 850 and 930 respectively, or 11 and 22 percent upside from
Tuesday's close.
    "The combination of dissipating global marco risks and
improving domestic macro and micro fundamentals will help lower
the market's risk premium and drive Topix higher," Goldman Sachs
said in a report.
    "Given the sharp rise in just the past four weeks, we expect
the market to digest recent gains near-term," it said, adding
that its three-month target remained 775.
    The brokerage said it was overweight capital goods,
transportation, automobiles, banks and
real estate.

> Wall St slips after S&P 500 hits four-year high           
> Euro hits 7-wk high on speculation ECB will take action 
> Treasuries little changed, ECB plans in focus            
> Gold up 1 pct at 3-1/2-month high on ECB stimulus talk  
> Oil rises on euro zone hopes, supply worries             
    Japan's top oil and gas explorer Inpex said on Tuesday it
has agreed to acquire a 9.9 percent stake in Angola's offshore
block 14 from France's Total.

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