TOKYO (AFX) - Share prices may open firmer on sharp gains in US markets overnight, spurred by benign inflation data and a pullback in crude-oil prices, dealers said.
Investor worries about inflation eased after the US Labor Department reported overnight that closely-watched core consumer prices, which exclude volatile food and energy prices, increased just 0.2 pct in January, in line with economists' forecasts.
The tame inflation result watered down expectations of higher interest rates going forward.
Last week, the new Fed chairman Ben Bernanke said in his first testimony that more rate hikes may be needed because of the threat of higher inflation, but suggested they will become 'increasingly dependent' on economic data.
On Wall Street, the Dow Jones Industrial Average finished up 68.11 points or 0.6 pct at 11,137.17, its best finish since June 2001. The technology-laden Nasdaq Composite Index was up 20.21 points or 0.9 pct at 2,283.17.
The broader Standard and Poor's 500 index was up 9.63 points or 0.8 pct at 1,292.67.
The benchmark April crude contract ended down 1.73 usd at 61.01 usd a barrel at the New York Mercantile Exchange.
The Nikkei futures contract in Chicago stood at 15,950, up from 15,750 at the close at the Osaka Securities Exchange yesterday.
Yesterday at the Tokyo Stock Exchange, the blue-chip Nikkei 225 Stock Average closed down 113.16 points or 0.7 pct at 15,781.78.
The TOPIX index of all first-section issues fell 3.10 points or 0.2 pct to 1,609.46.
On the calendar today, the trade balance for January will be out ahead of the opening bell. The market expects a trade deficit of 110.9 bln yen, according to an average forecast of 23 research houses polled by the Nihon Keizai Shimbun.
Estimates range from a deficit of 378.6 bln yen to a surplus of 158.0 bln yen.
The, December tertiary index and Jan corporate services price index will be released at the same time.
Stocks to watch include Internet firm Softbank Corp which said yesterday it has agreed to set up a joint venture with OhmyNews Co Ltd of South Korea, that will provide a Japanese language version of the South Korean company's 'citizen journalism' online news service.
NEC Electronics Corp may draw some buying interest after it decided to shut down its semiconductor plant in Ireland and lay off all the workers as part of a broader restructuring drive, aimed at reducing production costs and improving efficiency.
Takeda Pharmaceutical Co could attract investors after its patent on the diabetes treatment Actos, known as pioglitazone in the US, was affirmed by a US District Court.
nozomi.toyama@xfn.com
nt/tr
Investor worries about inflation eased after the US Labor Department reported overnight that closely-watched core consumer prices, which exclude volatile food and energy prices, increased just 0.2 pct in January, in line with economists' forecasts.
The tame inflation result watered down expectations of higher interest rates going forward.
Last week, the new Fed chairman Ben Bernanke said in his first testimony that more rate hikes may be needed because of the threat of higher inflation, but suggested they will become 'increasingly dependent' on economic data.
On Wall Street, the Dow Jones Industrial Average finished up 68.11 points or 0.6 pct at 11,137.17, its best finish since June 2001. The technology-laden Nasdaq Composite Index was up 20.21 points or 0.9 pct at 2,283.17.
The broader Standard and Poor's 500 index was up 9.63 points or 0.8 pct at 1,292.67.
The benchmark April crude contract ended down 1.73 usd at 61.01 usd a barrel at the New York Mercantile Exchange.
The Nikkei futures contract in Chicago stood at 15,950, up from 15,750 at the close at the Osaka Securities Exchange yesterday.
Yesterday at the Tokyo Stock Exchange, the blue-chip Nikkei 225 Stock Average closed down 113.16 points or 0.7 pct at 15,781.78.
The TOPIX index of all first-section issues fell 3.10 points or 0.2 pct to 1,609.46.
On the calendar today, the trade balance for January will be out ahead of the opening bell. The market expects a trade deficit of 110.9 bln yen, according to an average forecast of 23 research houses polled by the Nihon Keizai Shimbun.
Estimates range from a deficit of 378.6 bln yen to a surplus of 158.0 bln yen.
The, December tertiary index and Jan corporate services price index will be released at the same time.
Stocks to watch include Internet firm Softbank Corp which said yesterday it has agreed to set up a joint venture with OhmyNews Co Ltd of South Korea, that will provide a Japanese language version of the South Korean company's 'citizen journalism' online news service.
NEC Electronics Corp may draw some buying interest after it decided to shut down its semiconductor plant in Ireland and lay off all the workers as part of a broader restructuring drive, aimed at reducing production costs and improving efficiency.
Takeda Pharmaceutical Co could attract investors after its patent on the diabetes treatment Actos, known as pioglitazone in the US, was affirmed by a US District Court.
nozomi.toyama@xfn.com
nt/tr