TOKYO: Japan's Nikkei average is set to rise on Tuesday, Sept 7 riding momentum from the past four days of gains but profit-taking is expected to emerge as the index nears a one-month high and as the yen's strength shows little sign of abating.
Orders for Japanese stocks placed through 10 foreign securities houses before the start of trade showed net buy orders of 5.9 million shares.
"The Nikkei is likely to continue rebounding from its recent lows. That the index was able to rise back above 9,200 after upbeat U.S. jobs data should continue fuelling the rise," said Masayoshi Yano, a senior market analyst at Meiwa Securities.
A day earlier the Nikkei broke above its 25-day moving average of 9,229, which had served as a key resistance level.
"But the Nikkei's rise has been led by futures for the most part and this could eventually lose steam. The yen remains strong and profit-taking may cap the upside after such sharp gains over the past few days," said Yano.
Market players said they expected a wait-and-see mood to prevail, with investors keen to see how U.S. stock markets react to President Barack Obama's infrastructure plan proposal. U.S. markets were closed on Monday for the Labor Day holiday.
The Nikkei average closed Monday a little above 9,300, having bounced from a 16-month low of 8,927 struck last Wednesday after four straight days of gains. A rise above 9,362 would take it to a one-month peak.
Investors will be keeping an eye on the Bank of Japan as it wraps up a two-day policy meeting. Many expect the central bank to keep monetary policy unchanged as it has already eased at an emergency meeting last week.
Mitsubishi Motors Corp and French group PSA Peugeot Citroen plan to begin the manufacture of electric vehicles by 2012 at PSA's factor in Spain, the Nikkei business daily reported. - Reuters
Orders for Japanese stocks placed through 10 foreign securities houses before the start of trade showed net buy orders of 5.9 million shares.
"The Nikkei is likely to continue rebounding from its recent lows. That the index was able to rise back above 9,200 after upbeat U.S. jobs data should continue fuelling the rise," said Masayoshi Yano, a senior market analyst at Meiwa Securities.
A day earlier the Nikkei broke above its 25-day moving average of 9,229, which had served as a key resistance level.
"But the Nikkei's rise has been led by futures for the most part and this could eventually lose steam. The yen remains strong and profit-taking may cap the upside after such sharp gains over the past few days," said Yano.
Market players said they expected a wait-and-see mood to prevail, with investors keen to see how U.S. stock markets react to President Barack Obama's infrastructure plan proposal. U.S. markets were closed on Monday for the Labor Day holiday.
The Nikkei average closed Monday a little above 9,300, having bounced from a 16-month low of 8,927 struck last Wednesday after four straight days of gains. A rise above 9,362 would take it to a one-month peak.
Investors will be keeping an eye on the Bank of Japan as it wraps up a two-day policy meeting. Many expect the central bank to keep monetary policy unchanged as it has already eased at an emergency meeting last week.
Mitsubishi Motors Corp and French group PSA Peugeot Citroen plan to begin the manufacture of electric vehicles by 2012 at PSA's factor in Spain, the Nikkei business daily reported. - Reuters
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