September 13, 2012 / 11:27 PM / 5 years ago

Nikkei set to rise but strong yen may cap gains

TOKYO, Sept 14 (Reuters) - Japan's Nikkei share average is
expected to open higher on Friday, targetting two-week highs
above 9,000 on investor optimism after the Federal Reserve
launched new stimulus for the U.S. economy, but a stronger yen
could cap gains.
    The yen hit a seven-month high of 77.13 per dollar on
Wednesday, and was quoted at 77.64 yen on Friday. A stronger yen
is usually a negative factor for exporters such as car makers.
    "The market will start out higher today, and some of the
recently oversold sectors will be bought back today, but there
are limits to Japan's gains," said Kenichi Hirano, operating
officer at Tachibana Securities.
    "The dollar weakened against the yen, which is going to
weigh on exporter shares and be a drag on the upside."
    Strategists said the Nikkei was likely to trade
between 8,950 and 9,100. Nikkei futures in Chicago 
closed at 9,000 on Thursday, up 0.9 percent from the Osaka
 close of 8,920.
    The Fed said it would buy $40 billion of agency mortgage
debt per month and pledged to maintain it until the U.S.
unemployment rate, currently at 8.1 percent, significantly
improves. 
    Friday's special quotation, or "SQ", to settle Nikkei
futures and options contracts expiring in September was expected
to go smoothly, the strategists said. 
    On Thursday, the Nikkei rose 0.4 percent to 8,995.15, while
the broader Topix index added 0.3 percent to 744.23.
    The Nikkei is up 1.4 percent so far this week and 6.4
percent for the year.
    
> Fed's stimulus move ignites Wall Street                  
> Dollar drops broadly as Fed unleashes new stimulus     
> Prices for 30-year Treasuries sink on QE3               
> Gold jumps 2 pct as Fed stimulus fans inflation fears  
> Oil rises as Fed stimulus cheers markets                
    
    STOCKS TO WATCH
    --HITACHI LTD 
    Hitachi, Japan's biggest industrial electronics company,
said it would pay a dividend of 5 yen per share for its fiscal
first half ending Sept. 30, up from 3 yen a year earlier.
    --NINTENDO CO LTD 
    Video game pioneer Nintendo will try to revive its flagging
fortunes with a new gaming system, Wii U, that hits U.S. stores
on Nov. 18, complete with a new "Super Mario" game it hopes will
retake market share from Internet and mobile rivals.
 
    --NOMURA HOLDINGS 
    A week after announcing a plan to scale back its traditional
stock trading businesses worldwide, Nomura said it has
restructured the management team at its U.S. equities group.
 
    --SANKYO CO LTD 
    Sankyo, a maker of 'pachinko' pinball game equipment, cut
its operating profit forecast for the first half ending Sept. 30
by 60 percent to 5.2 billion yen ($66.78 million) because of
lower than expected sales.

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