CORRECTED-Nikkei to trade in narrow range as U.S. fiscal concerns linger

Mon Nov 12, 2012 11:43pm GMT

(Corrects 8th paragraph to show Nikkei Chicago futures were up
from the Osaka close, not down)
    TOKYO, Nov 13 (Reuters) - Japan's Nikkei share average is
set to trade in a tight range on Tuesday after a subdued session
on Wall Street, with exporters likely to stay weak on lingering
concern about a U.S. fiscal policy standoff that threatens to
push the country into recession.
    Market players said the Nikkei was likely to trade between
8,650 to 8,750 on Tuesday, after falling on Monday for a sixth
consecutive session to its lowest close in four weeks.
    "Although worries about the U.S. economy may dampen investor
appetite, Japanese stocks are relatively cheap, so there may not
be heavy selling," said Hiroichi Nishi, general manager at SMBC
Nikko Securities.
    The benchmark Nikkei is up 2.6 percent this year, trailing a
9.7 percent gain in the U.S. S&P 500 and a 10.2 percent
rise in the pan-European STOXX Europe 600.
   Worries about the U.S. "fiscal cliff" - a series of budget
cuts and tax hikes that will start to go into effect in the new
year - have investors cautious because of the potential for harm
to U.S. economic growth.
    Japanese equities carry a 12-month forward price-to-book
ratio of 0.83, much cheaper than the S&P 500's 1.9 and STOXX
Europe 600's 1.38, data from Thomson Reuters Datastream showed.
     The Nikkei fell 0.9 percent to 8,676.44 on Monday,
and the broader Topix dropped 1.1 percent to 722.58.
    Nikkei futures in Chicago <0#NIY:> closed at 8,710, up from
the close in Osaka of 8,690.
     
> 'Fiscal cliff' standoff keeps Wall Street subdued       
> Euro flat vs dollar, near 2-month low on Greece concerns 
> U.S. bond market closed Veterans Day, to reopen Tuesday 
> Gold falls as euro zone worries trigger selling         
> Oil dips, 'fiscal cliff' outweighs geopolitical tension 
    STOCKS TO WATCH
    --Hitachi Metals Ltd and Hitachi Cable Ltd 
    Hitachi Ltd subsidiaries Hitachi Metals and Hitachi
Cable plan to merge in April, creating a materials producer with
businesses ranging from automotive and electronics parts to
fibre optics, the Nikkei business daily reported.
 
    --Panasonic Corp 
    Panasonic unit Sanyo Electric Co is in talks to sell its
digital camera business to an investment fund as early as this
year, the Nikkei business daily said. 

 (Reporting by Ayai Tomisawa; Editing by Edmund Klamann)
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