Reuters: Market News: Nikkei set to rise on fresh hopes for U.S. easing

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Nikkei set to rise on fresh hopes for U.S. easing Mar 26th 2012, 23:19 Mon Mar 26, 2012 7:19pm EDT TOKYO, March 27 (Reuters) - Japan's Nikkei average is set to rise more than 1 percent on Tuesday on the back of overnight gains on Wall Street after U.S. Federal Reserve Chairman Ben Bernanke signaled that supportive policy may continue despite improvements in the labour market. Market players said the Nikkei was likely to trade between 10,050 to 10,200 on Tuesday after Nikkei futures in Chicago closed at 10,050, up 90 points or 0.9 percent, f r om the close in Osaka of 9,960. "The global correction mood that has prevailed on markets recently will now shift on Bernanke's comments and positive data out of Europe. Stocks will be strong today," said Hideyuki Ishiguro, assistant manager of investment strategy at Okasan Securities. German business sentiment in March rose unexpectedly for the fifth month in a row, according to the latest data from Munich-based Ifo on Monday. "Blue-chips will be strong gainers today, but we may also see shippers rise on a report that U.S. bound spot container prices are on the rise," said Ishiguro. All three U.S. indexes ended up more than 1 percent on Monday following comments from the Fed's Bernanke, which reinforced the view that further quantitative easing from the central bank may be possible. A softer yen against the euro and dollar was also expected to support Tokyo stocks, which experienced a slight correction last week. The dollar was last trading at 82.843 yen on the EBS platform, while the euro was at 110.670 yen. Credit Suisse was upbeat on Japanese equities in a report to clients on Friday and said it expected U.S. bond yields to rise further to reflect improving macro economic environment. "India, Hong Kong, Russia and Japan have been the best performing markets in past periods of rising bond yields and our model of Japan, based on lead indicators, bond yields and the yen, suggested another 12 percent outperformance," it said in a report. The benchmark Nikkei closed 0.1 percent higher at 10,018.24 on Monday, while the broader Topix index lost 0.1 percent to 851.82. > Bernanke's words drive Wall St up 1 pct > Euro gains vs dlr and yen; Bernanke triggers new QE talk > Prices mixed after Bernanke > Gold rises 1.5 pct on renewed US easing hopes > Oil rises, Bernanke comments lift markets STOCKS TO WATCH -- HONDA MOTOR CO Honda will build another automobile factory in Thailand, likely in the southeastern part of the country where the risk of flooding is lower, the Nikkei business daily reported on Tuesday, quoting unnamed company sources. -- TEPCO Tokyo Electric Power Co (Tepco) will seek 800 billion yen ($9.66 billion) in additional assistance from the government-backed nuclear compensation fund, along with a capital injection of 1 trillion yen this week, the Nikkei said on Tuesday. -- RENESAS, FUJI ELECTRIC Renesas Electronics Corp will sell a microcontroller fabrication facility in northeast Japan to Fuji Electric Co for an estimated 5 billion yen ($60.4 million), the Nikkei said on Tuesday. The paper said Fuji Electric plans to upgrade equipment at the plant and produce power semiconductors for automobiles. --NIPPON STEEL CORP Nippon Steel Corp said on Monday it will spend 34 billion yen ($410.48 million)to raise internal volumes by 18 percent in an overhaul of its blast furnace at its Kitakyushu plant, the Nikkei said on Tuesday. Link this Share this Digg this Email Reprints

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