TOKYO: Japan's Nikkei average is set on Tuesday, March 22 to recoup some of last week's 10 percent loss after reports of progress to contain radiation leaks at a quake-stricken nuclear power plant and joint intervention in the currency markets by the Group of Seven (G7) that helped to curb the yen's rise.
Sentiment will also get a boost from a solid showing on Wall Street on merger and acquisition activity and from comments by billionaire investor Warren Buffet that Japan represents a buying opportunity and will recover from the devastating earthquake and tsunami.
But looking at the medium term, gains will likely be hard-won as investors await earnings figures and forecasts in late April and early May for a better sense of how the triple disaster of an earthquake, tsunami and nuclear accident will affect individual companies.
"The situation at the nuclear plant has not been resolved but compared with Friday's close we can say things are moving in the right direction," said Takashi Hiroki, chief strategist at Monex Inc.
"Japanese stocks have entered a long and winding recovery path and it will take a while before they reach this year's highs, but looking mid-term, we're again in a rising trend," Hiroki said.
Analysts said that, while many factories were still not fully operational, exporters' shares may benefit if the yen eases further, with many traders keen to see whether the Bank of Japan and its G7 partners continue to intervene this week.
Nikkei futures last traded in Chicago at 9,540, up 410 points from the last closing level in Osaka and a 333 point premium to the close of the underlying index .N225.
The U.S.-listed shares of Japanese companies rose more than 2.1 percent .BKJP on Monday.
U.S. shares rose after phone company AT&T (T.N) unveiled a $39 billion deal to buy Deutsche Telekom AG's (DTEGn.DE) T-Mobile USA, creating the biggest mobile operator in the United States.
Analysts said the Nikkei would likely trade between 9,500 and 9,650 on Tuesday. - Reuters
Sentiment will also get a boost from a solid showing on Wall Street on merger and acquisition activity and from comments by billionaire investor Warren Buffet that Japan represents a buying opportunity and will recover from the devastating earthquake and tsunami.
But looking at the medium term, gains will likely be hard-won as investors await earnings figures and forecasts in late April and early May for a better sense of how the triple disaster of an earthquake, tsunami and nuclear accident will affect individual companies.
"The situation at the nuclear plant has not been resolved but compared with Friday's close we can say things are moving in the right direction," said Takashi Hiroki, chief strategist at Monex Inc.
"Japanese stocks have entered a long and winding recovery path and it will take a while before they reach this year's highs, but looking mid-term, we're again in a rising trend," Hiroki said.
Analysts said that, while many factories were still not fully operational, exporters' shares may benefit if the yen eases further, with many traders keen to see whether the Bank of Japan and its G7 partners continue to intervene this week.
Nikkei futures last traded in Chicago at 9,540, up 410 points from the last closing level in Osaka and a 333 point premium to the close of the underlying index .N225.
The U.S.-listed shares of Japanese companies rose more than 2.1 percent .BKJP on Monday.
U.S. shares rose after phone company AT&T (T.N) unveiled a $39 billion deal to buy Deutsche Telekom AG's (DTEGn.DE) T-Mobile USA, creating the biggest mobile operator in the United States.
Analysts said the Nikkei would likely trade between 9,500 and 9,650 on Tuesday. - Reuters
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