Nikkei set to rise on BOJ governor's early departure

Tue Feb 5, 2013 11:49pm GMT

TOKYO, Feb 6 (Reuters) - Japan's Nikkei average is expected
to rise on Wednesday, helped by a sharp fall in the yen after
central bank Governor Masaaki Shirakawa decided to step down
three weeks earlier than expected, possibly bringing forward an
anticipated shift to a more aggressive monetary policy.
    Currency-sensitive exporters were expected to lead the
market higher after the yen hit a 33-month low of 93.79
yen to the dollar in early Asian trade on Wednesday.
    Prime Minister Shinzo Abe has put the central bank under
relentless pressure to do more to lift the economy and made it
clear he wants someone in the job who will be bolder than the
outgoing BOJ chief in loosening monetary policy. 
    Analysts said the Nikkei was expected to trade
between 11,150 and 11,250 after ending down 1.9 percent to
11,046.92 on Tuesday.
    Nikkei futures in Chicago closed at 11,265 on
Tuesday, up 1.7 percent from the Osaka close of 11,080.
    "The market's consensus is that it wants a BOJ governor who
shares the government's push to reflate the economy with
aggressive easing, and the news raised expectations for an
appointment of such governor," said Hiroichi Nishi, assistant
general manager at SMBC Nikko Securities.
    Better-than-expected euro zone data may also help sentiment.
Markit's euro zone composite PMI, seen as a good indication of
economic growth, climbed to a 10-month high for January and was
slightly above the preliminary reading.
    
> Wall St bounces back after sell-off; results a boost      
> Yen under relentless pressure, euro rebounds            
> Treasuries slip as investors flock to riskier assets     
> Gold lower as economy improves, platinum metals up      
> Brent jumps, hits 20-week high on strong data, sentiment 

    STOCKS TO WATCH
    --TOYOTA MOTOR CORP 
    Toyota lifted its annual profit guidance, banking on
stronger sales in its key U.S. market and a boost from a weaker
yen, which put its Japanese manufacturing in the black for the
first time in five years. 
    --GS YUASA CORP 
    GS Yuasa, the firm whose products are the focus of U.S. and
Japanese investigations into what caused battery problems on
Boeing Co's 787 Dreamliner, said it did not expect the
issue to hurt either its earnings or its reputation.
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