TOKYO, Jan 16 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
> 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.
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
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.