Tuesday, December 27, 2011

Nikkei set to trade in narrow range after rally

TOKYO (Dec 27): Japan's leading share index is expected to be rangebound between 8,430 and 8,530 on Tuesday in thin trade, strategists said, as many overseas markets were closed overnight for extended Christmas breaks.

"With overseas markets closed overnight it is difficult for the Nikkei to move. The Nikkei was able to briefly go over the 8,500 level yesterday, but closed below that after staying in a tight range," said Yumi Nishimura, senior technical analyst at Daiwa Securities.

"Today will be similar, with really no news for investors to trade on. Foreign investors are still on Christmas breaks so volume will remain very thin. A lot of market participants are taking a wait-and-see approach today to see how the U.S. markets perform tonight."

The Nikkei on Monday closed up 1 percent and above its 25-day moving average at 8,479.34, though it was below 8,502, the 38.2 percent retracement of its rally from late November to early December.

The broader Topix index advanced 0.5 percent to 726.44.

Trading volume on Tokyo's main board hit a fresh low for the year on Monday, with just 904.2 million shares changing hands, as many global markets, including the United States and Europe, were closed for Christmas.



Keio Corp plans to acquire a real estate subsidiary of Tokyo Electric Power Co early next month, the Nikkei business daily reported.


Seven & i Holdings Co will build its first distribution centre for online orders and consolidate the Internet shopping operations of group firms as the retail group looks to boost growth in its e-commerce segment, the Nikkei said.


Hitachi Transport System Ltd plans to enter the logistics business in Vietnam as it looks to capitalize on rising consumer spending in the country, the Nikkei business daily reported.


The Japanese electronics firm will buy automotive LCD panel maker Optrex for about 20 billion yen ($256.08 million) to better compete against rivals Sharp and Toshiba , the Nikkei reported.


Kyushu Electric Power Co said on Monday it may fail to meet power demand in January if the shutdown of the 500-megawatt oil-fired No.2 unit at its Ainoura plant in southwestern Japan is prolonged. - Reuters

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