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Nikkei seen rebounding on short-covering as yen, Dow steady
July 25, 2012 / 11:20 PM / 5 years ago

Nikkei seen rebounding on short-covering as yen, Dow steady

 TOKYO, July 26 (Reuters) - Japan's Nikkei share average is
likely to rebound from a seven-week low on Thursday following a
small gain in the U.S. Dow Jones index, although worries about
the global economy will keep the market under pressure.
 Exporters may benefit from signs of stability in the yen,
which is holding below its seven-week high against the dollar,
hit on Monday.
 "I think we are going to see some short-covering as the
yen's rally appears to have stopped for now," said Yutaka Miura,
technical analyst at Mizuho Securities.
 "But given that there's still huge uncertainty on Europe and
that U.S. economic indicators and earnings are mixed, we can't
expect too much upside. The Nikkei won't probably recover all of
yesterday's losses," he added.
 On Wednesday, the Nikkei dropped 1.4 percent to
8,365.90, edging closer to its June 4 low of 8,238.96. 
 Market players said the Nikkei was likely to trade between
8,300 and 8,450 on Thursday.
 Nikkei futures in Chicago <0#NIY:> closed at 8,410, up from
the close in Osaka of 8,350.
 On Wall Street, the Dow rose 0.5 percent, although the
Standard and Poor's 500 Index was virtually flat and the
Nasdaq fell 0.3 percent.
>S&P 500, Nasdaq fall on Apple's miss; Dow rises         
>Euro rises from 2-year low, but gains expected to fade 
>Prices ease but yields hold near record lows           
>Gold rises 1.5 pct on stimulus hopes for US, Europe   
>Brent hits $104 on Mideast fear, hopes for Fed action  
 -- Canon 
 Canon Inc cut its full-year operating profit
outlook to 390 billion yen ($5 billion) from a previously
forecast 450 billion yen on Wednesday, buffeted by a euro zone
crisis which sent the yen climbing while sapping demand from a
key export market.  
 -- Olympus, Terumo, Sony 
 Terumo has made an offer to merge with Olympus Corp
, starting with an investment of 50 billion yen ($639
million) to raise its stake in the embattled camera and medical
device maker to 15 percent from 2.1 percent, the Nikkei reported
on Thursday.
Terumo, which also makes medical devices, plans to appeal
directly to Olympus shareholders and will announce its proposal
on Thursday, putting it in a competition with Sony, which has
offered to invest 50 billion yen in Olympus.
 -- Fanuc 
 Fanuc said on Wednesday its April-June operating profit fell
1.6 percent from a year earlier to 54.14 billion yen. But the
manufacturer of robots maintained its half-year profit forecast
of 113 billion yen.
 -- Nintendo 
 The manufacturer of game machines and software on Wednesday
reported a first-quarter loss that was half of what analysts had
expected due to cost-cutting and new software titles. 
 -- Hitachi 
 Britain has approved a 4.5 billion pound ($7 billion)
contract with a consortium led by Japan's Hitachi to
build 92 intercity trains at a newly built factory in northern

 (Reporting by Hideyuki Sano; Editing by Richard Pullin)

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