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5 years ago
Nikkei set to rise, helped by U.S. service sector data
June 5, 2012 / 11:22 PM / 5 years ago

Nikkei set to rise, helped by U.S. service sector data

 TOKYO, June 6 (Reuters) - Japan's Nikkei average is expected
to open higher on Wednesday, moving further away from a
six-month closing low hit on Monday after data showed the U.S.
services sector improved in May, helping to offset concerns over
Europe.	
 Although investors remain cautious, with Spain saying it was
losing access to credit markets and that Europe should help
revive its banks, they might avoid placing too many bearish bets
ahead of a European Central Bank meeting later in the day.	
 U.S. Federal Reserve Chairman Ben Bernanke's will also speak
on the U.S. economy before a congressional committee on
Thursday.	
 The Nikkei was likely to trade between 8,400 and
8,500, strategists said, after Nikkei futures in Chicago
<0#NIY:> closed at 8,455 on Tuesday, up 0.5 percent from the
Osaka close.	
 "The markets are awaiting today's ECB meeting and Thursday's
Bernanke speech, so trading will likely be rangebound," said
Kenichi Hirano, operating officer of Tachibana Securities.	
 But he added that the downside could be more vulnerable than
the upside as June options and futures contracts will be settled
on Friday.	
 "Even after plunging on Monday in line with other markets on
the 'U.S. payrolls shock', support at 8,200 held, so some
investors might be ready to call a bottom and take advantage of
low valuations and start buying again. But until this happens,
and volume picks up, there probably won't be big moves," Hirano
said.	
 The Nikkei gained 1 percent to 8,382.00 on Tuesday, while
the broader Topix index rose 1.8 percent, climbing from
the previous session's hefty losses to a more than 28-year low.	
 The benchmark Nikkei has fallen 18.3 percent since hitting a
one-year peak on March 27, and is down 0.9 percent this year on
concerns over a deepening euro zone debt crisis and a slowing
global growth.	
	
> Wall Street rebounds but mood still sour                	
> Euro falls as Spain fears rise, G7 take no action     	
> Long-dated Treasuries prices dip on profit-taking      	
> Gold eases, focus shifting to key economic events     	
> Brent little changed, U.S. crude posts gain            	
 	
 STOCKS TO WATCH	
 --NOMURA HOLDINGS INC 	
 Nomura, under investigation for insider trading, is among
four Japanese and five foreign brokerages shortlisted to
underwrite a government sale of shares in Japan Tobacco
, which could raise around $6 billion, the Finance
Ministry said. 	
 --NINTENDO CO LTD 	
 Nintendo will launch a console with a dedicated "Super
Mario" game title for the first time in 16 years, as the
struggling Japanese company hopes the new Wii U will score the
rave reviews that helped make its predecessor the world's
biggest gaming hit. 	
 --NISSAN MOTOR CO 	
 Nissan, Japan's No.2 automaker, expects auto demand in
China's inland provinces to help offset anaemic sales on the
Chinese coast. 	
 --SONY CORP 	
 Sony CEO Kazuo Hirai will earn less this year despite his
elevation in April from deputy to the top post, after the once
stellar consumer electronics company posted a record loss and
its fourth straight annual deficit.    	
	
 (Reporting by Dominic Lau and Lisa Twaronite; Editing by Edwina
Gibbs)	
 

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