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Nikkei seen recovering slightly after sharp fall
January 16, 2013 / 11:27 PM / 5 years ago

Nikkei seen recovering slightly after sharp fall

TOKYO, Jan 17 (Reuters) - Japan's Nikkei share average was
expected to rise slightly on Thursday after suffering its
biggest drop in eight months on Wednesday, with financials
likely given a boost by better-than-expected earnings from U.S.
    The Nikkei was expected to trade between 10,550 to 10,700
points, market players said, after Nikkei futures in Chicago closed at 10,635, up 0.5 percent from the close in
Osaka of 10,580.  
    "Yesterday's fall was perhaps a bit overdone, so we should
see a rebound today," said Toshiyuki Kanayama, senior market
analyst at Monex. 
    The Nikkei tumbled 2.6 percent to 10,600.44 on Wednesday,
its biggest fall in eight months, which took it off a 32-month
high hit on Tuesday as the yen rebounded after weakening sharply
in the past two months.  
    "However, as the softening of the yen has paused and the
U.S. market was pretty flat, it will only be mild," Kanayama
    U.S. earnings were largely positive, with Goldman Sachs
 nearly tripling its revenue from dealmaking and lower
compensation and JPMorgan Chase's fourth quarter net
income jumping 53 percent, contributing to record earnings for
    Japanese suppliers of Apple Inc could also see
gains after the electronics giant's share price rebounded
following three days of losses that left it below $500 for the
first time in almost a year. 
    Data showing U.S. consumer prices were flat in December
should allow the Federal Reserve room to stay on its ultra-easy
monetary policy path. 
    The Bank of Japan, which has come under pressure from the
government to adopt aggressive policies to energise the ailing
economy and reach a 2 percent inflation rate, held off from
buying exchange-traded funds to prop up the market on Wednesday,
despite expectations it would step in after the Topix 
dropped 2 percent. 
    The Nikkei had rallied about 26 percent over the past two
months after political pressure on the central bank contributed
to a weaker yen, potentially boosting the profits of exporters
once repatriated and making their shares more attractive to
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    Struggling TV maker Sharp is in the final stages of talks
with Lenovo Corp Ltd to form a television operations
partnership in China, according to the Nikkei business daily.
    Japan Airlines and All Nippon Airways are expected to make
an announcement on Thursday about whether they will resume
flights with their Dreamliner Boeing passenger jets after
grounding the fleet on Wednesday following an emergency landing
due to a battery error. 
    Boeing's Japanese suppliers may suffer after the
airplane maker's shares lost 3.4 percent on safety concerns
about its new Dreamliner passenger jets following the latest
glitch that led to an emergency landing in Japan.

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