TOKYO, March 31 (Reuters) - Japan's Nikkei average may edge
higher on Wednesday in the wake of data showing signs of
stabilisation in the U.S. economy, with consumer confidence
rebounding as optimism about the labour market rose.
Honda Motor Co may draw attention after the Nikkei business daily said the car maker plans to move procurement of parts to emerging markets from developed nations, and consolidate purchases to cut costs, with initial savings from the consolidation estimated at $1.1 billion annually.
But market players said stocks could be vulnerable to profit-taking on the final day of the quarter and the Japanese business year. The Nikkei has risen 5.2 percent this quarter, and is up nearly 37 percent in Japan's 2009/10 financial year.
'Though in the short-term there's concerns about overheating, over the mid- to longer-term things are looking quite bright, what with expectations for Japanese earnings this year, rising trading volumes, and continued buying by foreigners,' said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
The benchmark Nikkei's relative strength index (RSI) has edged over 70, above which level the market is considered overbought, but longer-term directional indicators such as MACD show the Nikkei is still on an upward trend.
The U.S. Conference Board's index of consumer attitudes rose to a reading of 52.5 in March from an upwardly revised 46.4 in February. Analysts polled by Reuters had expected a March reading of 50.0.
U.S. home prices rose in January for the eighth straight month, helping bolster hopes for a sustainable economic recovery. On Monday, data pointed to gains in consumer spending.
Commodities-linked shares are likely to remain strong as prices of many metals extended gains, with copper hitting a
19
month high, as hopes for a sustainable economic recovery fed bullish sentiment.
The benchmark Nikkei is expected to move between 10,950 and
11,200. It closed at 11,097.14 on Tuesday, an 18
month closing high.
In a sign that shares are likely to open higher, Nikkei futures traded in Chicago closed at 11,140, up 0.2 percent from the Osaka close.
----------------------MARKET SNAPSHOT @ 2246 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 1173.27 0% 0.050 USD/JPY 92.85 0.03% 0.030
10-YR US TSY YLD 3.8585 -
0.000 SPOT GOLD 1102 -0.05% -0.500 US CRUDE 82.4 0.04% 0.030 DOW JONES 10907.42 0.11% 11.56
> Wall St rises on Apple; Honeywell raises view late > Dollar up vs yen on consumer confidence; euro slips > Bonds flat as calm pervades before quarter-end > Gold slips on dollar rise; eyes rangebound trade > Oil inches up on strong dollar, inventories eyed
STOCKS TO WATCH
-- KDDI Corp
KDDI will start sales of smart phones using Google Inc's Android operating system in early June, the Nikkei business daily said.
-- Mitsubishi Motors Corp
Mitsubishi said on Tuesday it would lower the price on its electric i-MiEV car by 619,000 yen to 3.98 million yen ($43,020), pitting it against rival Nissan Motor's zero-emission Leaf model.
-- Softbank Corp
Softbank, Japan's No.3 mobile phone operator, said it plans to boost its capital spending by 54 percent to 400 billion yen ($4.3 billion) next business year, a potential boon to telecoms infrastructure providers such as Nokia and Ericsson .
-- Hitachi Construction Machinery Co
Hitachi Construction said it would spend 22.6 billion yen ($244 million) to make an Indian construction machinery company a unit as it aims to boost sales in the fast-growing market.
Hitachi Construction, Japan's No.2 earth-moving equipment maker, said it would raise its stake in Telco Construction Equipment Co Ltd, a joint venture with Tata Motors Ltd, to 60 percent from 40 percent.
-- Komatsu Ltd
Komatsu, the world's No.2 earth-moving equipment maker, said its machinery sales in China soared 40 percent this financial year, but it had yet to see signs of recovery in the United States and Europe.
-- Nippon Soda
Nippon Soda Co Ltd is set to buy production and marketing rights to Dow AgroSciences LLC's tebufenozide insecticide, the Nikkei business daily said.
-- Toshiba Corp
Toshiba has decided to withdraw from overseas liquid crystal display (LCD) panel production and sell its Singapore plant to Taiwanese firm AU Optronics Corp for an estimated 10 billion yen, the Nikkei business daily said.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters Messaging:elaine.lies.reuters.com@reuters.net)) Keywords: MARKETS JAPAN STOCKS (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Honda Motor Co may draw attention after the Nikkei business daily said the car maker plans to move procurement of parts to emerging markets from developed nations, and consolidate purchases to cut costs, with initial savings from the consolidation estimated at $1.1 billion annually.
But market players said stocks could be vulnerable to profit-taking on the final day of the quarter and the Japanese business year. The Nikkei has risen 5.2 percent this quarter, and is up nearly 37 percent in Japan's 2009/10 financial year.
'Though in the short-term there's concerns about overheating, over the mid- to longer-term things are looking quite bright, what with expectations for Japanese earnings this year, rising trading volumes, and continued buying by foreigners,' said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
The benchmark Nikkei's relative strength index (RSI) has edged over 70, above which level the market is considered overbought, but longer-term directional indicators such as MACD show the Nikkei is still on an upward trend.
The U.S. Conference Board's index of consumer attitudes rose to a reading of 52.5 in March from an upwardly revised 46.4 in February. Analysts polled by Reuters had expected a March reading of 50.0.
U.S. home prices rose in January for the eighth straight month, helping bolster hopes for a sustainable economic recovery. On Monday, data pointed to gains in consumer spending.
Commodities-linked shares are likely to remain strong as prices of many metals extended gains, with copper hitting a
19
month high, as hopes for a sustainable economic recovery fed bullish sentiment.
The benchmark Nikkei is expected to move between 10,950 and
11,200. It closed at 11,097.14 on Tuesday, an 18
month closing high.
In a sign that shares are likely to open higher, Nikkei futures traded in Chicago closed at 11,140, up 0.2 percent from the Osaka close.
----------------------MARKET SNAPSHOT @ 2246 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 1173.27 0% 0.050 USD/JPY 92.85 0.03% 0.030
10-YR US TSY YLD 3.8585 -
0.000 SPOT GOLD 1102 -0.05% -0.500 US CRUDE 82.4 0.04% 0.030 DOW JONES 10907.42 0.11% 11.56
> Wall St rises on Apple; Honeywell raises view late > Dollar up vs yen on consumer confidence; euro slips > Bonds flat as calm pervades before quarter-end > Gold slips on dollar rise; eyes rangebound trade > Oil inches up on strong dollar, inventories eyed
STOCKS TO WATCH
-- KDDI Corp
KDDI will start sales of smart phones using Google Inc's Android operating system in early June, the Nikkei business daily said.
-- Mitsubishi Motors Corp
Mitsubishi said on Tuesday it would lower the price on its electric i-MiEV car by 619,000 yen to 3.98 million yen ($43,020), pitting it against rival Nissan Motor's zero-emission Leaf model.
-- Softbank Corp
Softbank, Japan's No.3 mobile phone operator, said it plans to boost its capital spending by 54 percent to 400 billion yen ($4.3 billion) next business year, a potential boon to telecoms infrastructure providers such as Nokia and Ericsson .
-- Hitachi Construction Machinery Co
Hitachi Construction said it would spend 22.6 billion yen ($244 million) to make an Indian construction machinery company a unit as it aims to boost sales in the fast-growing market.
Hitachi Construction, Japan's No.2 earth-moving equipment maker, said it would raise its stake in Telco Construction Equipment Co Ltd, a joint venture with Tata Motors Ltd, to 60 percent from 40 percent.
-- Komatsu Ltd
Komatsu, the world's No.2 earth-moving equipment maker, said its machinery sales in China soared 40 percent this financial year, but it had yet to see signs of recovery in the United States and Europe.
-- Nippon Soda
Nippon Soda Co Ltd is set to buy production and marketing rights to Dow AgroSciences LLC's tebufenozide insecticide, the Nikkei business daily said.
-- Toshiba Corp
Toshiba has decided to withdraw from overseas liquid crystal display (LCD) panel production and sell its Singapore plant to Taiwanese firm AU Optronics Corp for an estimated 10 billion yen, the Nikkei business daily said.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters Messaging:elaine.lies.reuters.com@reuters.net)) Keywords: MARKETS JAPAN STOCKS (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
