Nikkei seen retreating from 33-month high on profit-taking

Wed Jan 30, 2013 11:10pm GMT

TOKYO, Jan 31 (Reuters) - Japan's Nikkei share average is
expected to open lower on Thursday with investors likely to book
profits after the index rose sharply to end above 11,000 for the
first time in 33 months in the previous session.
    The Nikkei is likely to trade between 10,950 and
11,200, strategists said, while Nikkei futures in Chicago closed at 11,080 on Wednesday, down 0.2 percent from
the Osaka close of 11,100.
    "The Nikkei is at a very high level. I think we will see
some profit-taking in today's market," said Takashi Hiroki,
chief strategist at Monex Inc.
    But any selling is likely to be limited as bullish sentiment
in the Japanese market remains intact, Hiroki added.
    The Nikkei is up 6.9 percent this month, on track for its
best January performance since 1998, after rallying 22.9 percent
in 2012. Most of the gains last year came in the final six
weeks, as the yen weakened after Prime Minister Shinzo Abe
called on the central bank to ease policy more aggressively in
his election campaign.
    U.S. stocks slipped after the Federal Reserve said in its
latest statement that economic growth had stalled but indicated
the pullback was likely temporary. The statement followed data
that showed the U.S. economy had unexpectedly contracted in the
fourth quarter. 
    The Nikkei jumped 2.3 percent to 11,113.95 on Wednesday,
while the broader Topix index climbed 1.5 percent to
934.67.
    Despite the weaker yen, companies have so far reported
lacklustre earnings for the October-December quarter. Of the 26
Nikkei companies that have announced quarterly results so far,
nearly two-thirds have missed market expectations, according to
Thomson Reuters StarMine. That compared with 56 percent in the
previous three months.
    Toshiba Corp, Softbank Corp, Honda Motor
Co, TDK Corp and steelmaker JFE Holdings
 are to report quarterly earnings later in the day.    
            
> Wall St ends lower after Fed statement                    
> U.S. dollar at 14-low vs euro, Fed keeps easy policy     
> Treasuries little changed as Fed sees moderate growth    
> Gold rises on surprise drop in U.S. growth, Fed         
> Oil rises as economic optimism overshadows weak US data  

    STOCKS TO WATCH
    --CANON INC 
    Canon expects a 26.6 percent rise in operating profit this
year as it cuts costs and gets a boost to revenues from a
weakening yen, although the rise fell short of analysts'
expectations. 
    --NINTENDO 
     Nintendo Co Ltd, the world's leading gaming
company by machines sold, said it would post an operating loss
for a second straight year as the sales of its Wii U, successor
to the 100-million selling Wii, faltered. 
    --TOYOTA MOTOR CORP 
    Toyota will recall nearly 1.3 million cars globally for two
separate defects, including 752,000 Corolla and Corolla Matrix
vehicles in the United States to fix airbags that could be
deployed inadvertently, the automaker said on Wednesday.
 
    --SUMITOMO MITSUI FINANCIAL GROUP 
    Sumitomo Mitsui Financial Group kept its full-year profit
forecast unchanged even after Japan's No.3 lender by assets
posted nine-month earnings that had already beaten the estimate,
underscoring the bank's cautious economic outlook.
 
    --MAZDA MOTOR CORP 
    Mazda said on Wednesday it would spend about 26 billion yen
($286.8 million) to build a transmission factory in Thailand.
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