Japan's Nikkei set to fall but weak yen to limit loss

Sun Nov 4, 2012 11:17pm GMT

TOKYO, Nov 5 (Reuters) - Japan's Nikkei average is expected
to open lower on Monday, tracking weakness on Wall Street
despite better-than-expected U.S. jobs data, although a softer
yen is likely to limit losses for exporters.
    The Nikkei was likely to trade between 8,950 and
9,100, strategists said, while Nikkei futures in Chicago closed at 9,005 on Friday, down 0.6 percent from the
Osaka close of 9,060.
    "The U.S. market reaction was not a big surprise. The
positive jobs data had been discounted," said Takashi Hiroki,
chief strategist at Monex Inc. "But it's very clear the U.S.
economy is improving and recovering."
    U.S. stocks ended an unusual storm-shortened trading week
with a sell-off on Friday as major indexes erased early gains on
the payrolls report, with some analysts pointing to
disappointing third-quarter earnings. 
    But Hiroki said any selloff in the Nikkei was likely to be
limited as the yen was quoted at 80.470 to the dollar, hovering
near a six-month low of 80.680 hit on Friday. 
    On Friday, the Nikkei climbed 1.2 percent to 9,051.22 to a
one-week closing high but faced resistance at its 200-day moving
average at 9,070.56. The broader Topix index rose 1.2
percent to 752.09.
    Amid sluggish global growth, company earnings have been weak
this quarterly reporting season. About 56 percent of the 101
Nikkei companies that have reported earnings so far this quarter
undershot market expectations, according to Thomson Reuters
StarMine. That compared with 54 percent in the previous quarter.
    The benchmark Nikkei is up 7.1 percent this year, trailing a
12.5 percent rise in the U.S. S&P 500 and a 12.4 percent
gain in the pan-European STOXX Europe 600 index.
        
> Wall St ends storm-shortened week with a selloff          
> Dollar rallies broadly after U.S. jobs data             
> Treasuries near flat as investors eye election           
> Gold down 2 pct after strong U.S. nonfarm payrolls      
> Oil falls as U.S. acts to boost East Coast fuel supply   
    
    STOCKS TO WATCH
    --HONDA MOTOR CO 
    Honda's China car sales plunged 54 percent in October from a
year earlier, marking the second monthly sales slump as Japanese
automakers continue to suffer the backlash from a territorial
dispute between Beijing and Tokyo. 
    --NISSAN MOTOR CO 
    Nissan said on Friday it is investing 11 billion baht ($358
million) to build a second assembly plant in Thailand that will
have an annual production capacity of 75,000 vehicles when it
opens in August 2014.