Nikkei seen rising for 5th day as fiscal cliff fears recede
TOKYO, Nov 20 (Reuters) - Japan's Nikkei share average is seen rising on Tuesday for a fifth day and may test a six-month high of 9,300, helped by U.S. stocks which rose on signs of progress in resolving a looming fiscal crunch. Also helping sentiment is news that euro zone finance ministers will give a tentative go-ahead for the disbursement of 44 billion euros in emergency loans to Greece on Tuesday. Analysts said investors kept their appetites keen after the Nikkei average climbed for a fourth day to a two-month high on Monday, buoyed by growing expectations that Japan's main opposition Liberal Democratic Party will win next month's election and step up pressure on the central bank to ease monetary policy. "There is more room to rise in the Japanese market as this time, finally, there are signs that lingering problems about the U.S. fiscal cliff and euro-zone debt are headed for a solution," said Hiroichi Nishi, general manager at SMBC Nikko Securities. The Nikkei advanced 1.4 percent to 9,153.20, comfortably breaking above its 200-day moving average at 9,074.29 on Monday. The broader Topix also gained 1.4 percent to 762.16. U.S. legislators indicated compromises were possible in negotiations to avert $600 billion in tax increases and spending cuts due to start in January - the "fiscal cliff" that threatens to send the U.S. economy back into recession. Market players said the Nikkei was likely to trade between 9,150 to 9,300 on Tuesday. Nikkei futures in Chicago closed at 9,220, up 90 points from the close in Osaka of 9,130. The benchmark has rallied 5.68 percent in the past four sessions, taking its year-to-date gain to 8.25 percent, trailing a 10.28 percent rise in the U.S. S&P 500 and a 9.8 percent advance in the pan-European STOXX Europe 600 index. > Budget talk optimism spurs Wall St rally > Euro nears 2-week high on Greece, U.S. budget optimism > Prices dip on hopes budget crisis can be avoided > Gold up 1 pct on hopes over fiscal cliff talks, Greece > Oil rises 2.5 pct on Mideast tensions, US optimism STOCKS TO WATCH --JFE Holdings Inc, IHI Corp JFE and IHI have postponed their shipbuilding merger once again, apparently because the deal has yet to clear Chinese antitrust hearings, the Nikkei business daily reported on Tuesday. --Nintendo Co Roughly 1,000 consumers lined up at Nintendo Co.'s flagship store in New York to get their hands on the Wii U home video game console, which was released in the U.S. ahead of other markets on Sunday, the Nikkei said on Tuesday.
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