Nikkei set to trade in range, profit-taking may hit exporters
TOKYO, Jan 16 (Reuters) - Japan's Nikkei share average is set to trade in a range on Wednesday, as investors are expected to take profit on exporters from a pause in the yen's weakness. Analysts see the Nikkei trading between 10,750-10,900 on Wednesday after rising 0.7 percent to 10,879.08 on Tuesday, the highest close since April 30, 2010. Nikkei futures in Chicago closed at 10,865, down 25 points from the close in Osaka of 10,890. Tuesday's rally took the benchmark Nikkei's 14-day relative strength index to 79.6, way above the 70-mark which is deemed overbought and often signals a near-term correction. "Abenomics has lifted investor risk appetite and there may be more buying this week. However, yen weakness has already been priced in as a catalyst, so unless the yen weakens further, people may not chase the market higher aggressively," said Hiroichi Nishi, an assistant general manager of equity research at SMBC Nikko Securities. The Nikkei has rallied about 26 percent over the past two months, spurred by weakness in the yen after Japan's new leader Shinzo Abe called on the Bank of Japan to adopt aggressive policies to energise the ailing economy, including setting an annual inflation target of 2 percent. Analysts added that despite possible profit-taking, selling may not be sharp as investor sentiment has remained positive amid expectations for further monetary easing before the central bank's policy meeting on Jan 21-22. The dollar last traded at 88.76, pulling away from a 2-1/2-year high of 89.67 set on Monday. The broader Topix gained 0.8 percent to 906.22 on Tuesday. > Dow, S&P 500 inch up with retailers but Apple drags again > Yen advances on Japan official's comment; euro slides > Bond prices rise on U.S. debt ceiling jitters > Platinum at 3-month high on Amplats overhaul; gold firm > Oil slips as German data, US debt ceiling worries weigh STOCKS TO WATCH --Toyota Motor Corp's, Honda Motor Co Japanese automakers are spicing up their compact and subcompact lineups in the United States, with Toyota's Furia concept car hinting at more aggressive styling for the 2014 Corolla and Honda taking subcompact cars to the next level with its Fit-based SUV. --Nissan Motor Co Ltd Infiniti, the premium arm of Japanese automaker Nissan, expects to be building more than half its vehicles outside Japan "in the medium term," the brand's president said on Tuesday at an industry conference. --Nintendo Co In an effort to create more innovative and attractive products, Nintendo will combine the development segments for its home video game consoles and handheld game devices, the Nikkei reported. --Denso Corp Denso said it will invest nearly $1 billion in North America over the next four years, which will result in more than 2,000 jobs across the region. The investment will allow the company to better support its North American customers, as well as expand new business areas and localise products, many of which will help automakers meet upcoming fuel requirements.
- Tweet this
- Share this
- Digg this