European Factors-Shares seen broadly lower; focus on charts

July 30, 2010 By Leave a Comment

LONDON, July 29 (Reuters) – European shares are likely to
open flat to lower on Thursday, mirroring losses in Asia and on Wall Street,
with investors seen cautious following weak U.S. data and the market’s failure
to break key resistance levels.

According to financial bookmakers, Britain’s FTSE 100 .FTSE was expected
to open 6 to 11 points lower, Germany’s DAX .GDAXI was seen opening almost
flat and France’s CAC 40 .FCHI was expected to fall 9 to 14 points.

U.S. stocks fell on Wednesday after weak durable goods figures and a
downbeat assessment of the economy from the Fed’s Beige Book kept the benchmark
S&P 500 trapped below its 200-day moving average.

“U.S. economic data remains something of a concern for equity traders across
the globe with both the Fed’s beige book and the durable goods order numbers
released yesterday adding to the ongoing theme of disappointment here,” said Ben
Potter, research analyst at IG Markets.

“With August around the corner and Europe slowing down for the summer, it’s
all too easy to start thinking that an air of indifference may be about to grip
the markets.”

The FTSEurofirst 300 .FTEU3 index of top European shares closed 0.3
percent lower at 1,050.88 points on Wednesday, after rising by as much as 0.7
percent in early trade. In Asia, Tokyo’s Nikkei fell 0.4 percent on Thursday.

———————-MARKET SNAPSHOT AT 0510 GMT———————-

LAST PCT CHG NET CHG

S&P 500 .SPX 1,106.13 -0.69 % -7.71

NIKKEI .N225 9,711.31 -0.43 % -41.96

MSCI ASIA EX-JP .MIASJ0000PUS 486.79 -0.05 % -0.24

EUR/USD EUR= 1.3011 0.19 % 0.0025

USD/JPY JPY= 87.18 -0.18 % -0.1600

10-YR US TSY YLD US10YT=RR 2.989 — -0.01

10-YR BUND YLD EU10YT=RR 2.728 — -0.02

SPOT GOLD XAU= $1,165.60 0.26 % $3.05

US CRUDE CLc1 $77.08 0.12 % 0.09

———————————————————————–

* GLOBAL MARKETS-Asia shares retreat from highs, dollar dips [ID:nTOE66S007]

* Wall St ends lower after weak durable goods orders data [ID:nN28215774]

* Nikkei falls 0.5 pct after rally; Panasonic drops [ID:nTOE66S02I]

* FOREX-Euro dips vs yen on Japan exporter selling [ID:nTOE66S034]

* TREASURIES-Firm in Asia after strong auction [ID:nTOE66S02F]

* Oil steady near $77 after sharp U.S. inventory gain [ID:nSGE66S06Z]

* PRECIOUS-Gold regains strength on dollar; ETF drops [ID:nSGE66S00S]

* METALS-Copper inches lower as economic uncertainties weigh [ID:nTOE66S02T]

(Reporting by Atul Prakash; Editing by Jon Loades-Carter)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

French and Benelux stocks – Factors to watch on July 27

July 28, 2010 By Leave a Comment

Multimedia versions of Reuters Top News are now available for:
* 3000 Xtra : visit topnews.session.rservices.com
* BridgeStation: view story .134
For more information on Top News visit
topnews.reuters.com
For pan-European market data and news, click on codes in
brackets:
European Equities speed guide……………….
FTSE Eurotop 300 index………………………….FTEU3
DJ STOXX index…………………………………STOXX
Top 10 STOXX sectors……………………….PGL.STOXXS
Top 10 EUROSTOXX sectors…………………..PGL.STOXXES
Top 10 Eurotop 300 sectors………………….PGL.FTEU3S
Top 25 European pct gainers……………………PG.PEUR

Top 25 European pct losers…………………….PL.PEUR

Main stock markets:
Dow Jones…………….DJI Wall Street report …..[.N]
Nikkei 225…………..N225 Tokyo report…………[.T]
FTSE 100…………….FTSE London report………..[.L]
Xetra DAX…………..GDAXI Frankfurt market stories[.F]
CAC-40………………FCHI Paris market stories…[.PA]
World Indices………………………………..<0#.INDEX>
Reuters survey of world bourse outlook……….EQUITYPOLL1
Western European IPO diary……………………..WEUIPO
European Asset Allocation…………………….[EUR/ASSET]

Reuters News at a Glance:
Equities….. [TOP/EQE] World stock markets….[GLANCE/STX]

Main currency report:
Dollar/euro/yen………………………………….[FRX/]

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

JFE posts Q1 profit, forecast misses expectations

July 28, 2010 By Leave a Comment

July 27 (Reuters) – JFE Holdings Inc (5411.T) returned to profit in the April-June first quarter, but its earnings were sharply down on the previous quarter, hit by a delay in pushing through price increases, and the world’s 5th-ranked steelmaker gave only a cautious full-year outlook below consensus.

April-June recurring profit — before tax and one-offs — was 51.4 billion yen ($591 million), a turnaround from a 67.3 billion yen loss a year ago, but about 30 percent below the previous quarter’s profit.

JFE predicted a profit of 220 billion yen for the full year to March 2011, well below a consensus of 310.5 billion yen in a poll of 18 analysts by Thomson Reuters I/B/E/S.

Japanese steelmakers only applied the higher contract prices they agreed with domestic carmakers and other customers for part of the first quarter, while having to pay higher raw materials costs for the full April-June period.

In contrast, South Korean rival POSCO (005490.KS) earlier this month posted its second-best quarterly profit after twice hiking its steel prices.

Shares in JFE, which generates nearly half its revenues from exporting to Asia’s emerging economies, have fallen nearly 30 percent since early April, double the fall in the benchmark Nikkei average .N225, amid signs of slowing growth in China. ($1=86.96 Yen) (Reporting by Yuko Inoue, Editing by Ian Geoghegan)

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RPT-GLOBAL MARKETS-Asian stocks rise on US data, euro inches up

July 28, 2010 By Leave a Comment

HONG KONG, July 27 (Reuters) – Asian stocks rose to their highest in two and a half months on Tuesday, boosted by solid U.S. housing data, while the euro inched up towards two-month peaks on relief over stress tests on European banks.

High-yielding currencies like the Australian and New Zealand dollars held near recent highs and the dollar stabilised after retreating against the yen on Monday.

“The environment is gradually improving, after U.S. new home sales data and European banks’ stress tests, but investors are still not entirely convinced that the recovery is solid,” said Soichiro Monji, chief strategist at Daiwa SB Investments.

“The yen has yet to weaken properly either.”

The dollar was trading just below 87 yen JPY= after falling 0.7 percent in the previous session.

The euro crawled up above key resistance of 1.30 EUR= with sentiment buoyed after the stress tests. Analysts are now eyeing a 2-month high of $1.3029 hit last week as the next test.

The MSCI index of Asia Pacific ex-Japan stocks .MIAPJ0000PUS was up 0.4 percent, led by gains in the technology .MIAPJIT00PUS and consumer durables .MIAPJCD00PUS sectors.

The index is down just 2 percent in the year to date, and could return to the black this week, although earnings from Asian corporate heavyweights hold the key to further gains.

Japan’s benchmark Nikkei .N225 edged up above 9,520, a key technical resistance, but slipped back amid worries about a firm yen hitting exporters..

Overnight, Wall Street finished higher after new home sales in June logged a surprising jump and package delivery and business services company FedEx Corp’s (FDX.N), an economic bellwether, upgraded its quarterly and full-year earnings forecasts.

Asian corporate reporting season enters its busy phase this week amid expectations of robust results for the April-June reporting period, though the picture in the months ahead looks murkier. [ID:nSGE66J00X]

Among those reporting during the day are Indian energy major Reliance Industries (RELI.BO) and Japan’s Canon Inc (7751.T) and Daiwa Securities (8601.T).

Bucking the trend, Shanghai’s composite .SSEC, already the worst performer in Asia this year, fell 0.4 percent after a report the city’s banks are facing rising default risks on loans to real estate developers. [ID:nTOE66Q003]

The mood was already jittery after a report the previous day that almost a quarter of China’s local government debt is at risk of defaulting [ID:nTOE66P032].

Shanghai’s index is down more than 21 percent in the year to date despite a six-session rising streak which has taken it to month highs.

The Aussie AUD= was trading at $0.9020 close to an 11-week peak and the kiwi NZD= hovered at $0.7344, not far from a six-month high. (Editing by Kazunori Takada)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Nikkei jumps 2.8 pct as short-covering heats up

July 24, 2010 By Leave a Comment

July 23 (Reuters) – Japan’s Nikkei surged 2.8 percent and was set to snap a five-day losing streak on Friday, boosted as worries about the results of European bank stress tests eased and by robust U.S. corporate earnings.

Short-covering helped buoy the benchmark Nikkei after it shed nearly 6 percent in the past five days, market players said, with the pace picking up in the afternoon amid thin trade.

Charts grew brighter as the Nikkei pulled away from oversold territory, with the benchmark’s slow stochastic — a measure of how oversold the market is and whether it is in a short-term up or down trend — edging higher after a bullish cross on Thursday.

But market players remained wary.

“This jump is mainly coming from short-covering, it’s not a move that will really lead the Nikkei sharply higher,” said Kenichi Hirano, operating officer at Tachibana Securities.

“But if we manage to close at this level, we may be set for more gains next week. And while it’s probably not good to be over-optimistic, I think the stress test results are unlikely to be that harsh.”

The benchmark Nikkei .N225 rose 251.98 points to 9,472.86, while the broader Topix rose 2.3 percent to 844.10.

Semiconductor related shares rose in the wake of gains by their U.S. peers on Thursday, with the Philadelphia Semiconductor Index .SOXX rising more than 3 percent.

Microsoft Corp (MSFT.O) also reported a 48 percent rise in quarterly profit after the bell, easily beating Wall Street forecasts, though it failed to match chipmaker Intel Corp’s (INTC.O) strong optimistic tone last week. [ID:nN21206486] [ID:nN12197658]

Chip-tester maker Advantest Corp (6857.T) rose 2.1 percent to 1,916 yen, chip equipment maker Tokyo Electron (8035.T) gained 3.6 percent to 4,695 yen, and stepper maker Nikon (7731.T) climbed 3.5 percent to 1,514 yen.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

RPT-GLOBAL MARKETS-Asia stocks up, euro firm; stress tests eyed

July 24, 2010 By Leave a Comment

HONG KONG, July 23 (Reuters) – Asian stocks rose on Friday as strong earnings from economic bellwethers such as Caterpillar tempered concerns about a global slowdown, while the euro steadied ahead of European bank stress test results later in the day.

European stocks .FTEU3 were expected to open little changed as investors awaited the test results. Worries about the health of the region’s banks have driven up funding costs and weighed on share prices since Greece’s debt crisis triggered fears that the euro zone could unravel.

The euro EUR= jumped more than 1 percent against the dollar on Thursday to around $1.29 and European bank stocks rose across the board in a sign that investors are starting to hope the worst is behind the region’s financial industry. [ID:nTOE66M00D]

But a lack of details about the terms of the tests and earlier divisions among European Union members over how much information will be made public has made investors wonder if the assessments would be tough or transparent enough. [ID:nLDE6601T6]

Buoyed by robust U.S. earnings reports, Asian stocks outside Japan .MIAPJ0000PUS rose 1.6 percent despite wariness over the European tests. They looked set to post a 2.5 percent gain on the week, with Asia ex-Japan equity funds seeing strong inflows.

Japan’s Nikkei .N225 rose 2.6 percent.

“There is obviously the risk that if too many banks pass and do so with a comfortable margin, the test may be judged as too easy to have actually been informative about the strength of the banking system,” said Goldman Sachs analyst Nick Kojucharov wrote in a note.

Ironically, word of a few small failures in fiscally weaker countries such as Portugal or Spain could actually boost confidence in the vigorousness of the testing process. The results are expected around 1600 GMT, though some sources said they could be released earlier.

Analysts say the most concern is over how the banks’ holdings of European sovereign debt will be treated and whether the assumed “haircuts” or expected losses on the debt are stringent enough.

“It is very important that banks demonstrate that they have nothing to hide,” said Nomura analyst Peter Westaway in a note, adding that the most important advantage of the tests is likely to be that they will provide enough transparency to allow analysts to conduct their own stress tests on banks in future.

A positive response to the test results would like spur investors to return to riskier assets, even though the euro zone’s debt problems will take years to resolve.

However, even if most banks pass the test, analysts estimate lenders in the region will need to raise as much as 90 billion euros in fresh capital as they recover from the credit crisis and comply with new regulations, which could blunt any initial gains.

Major U.S. share indexes rose as much as 2.7 percent overnight as robust quarterly results from construction and mining equipment maker Caterpillar (CAT.N), 3M (MMM.N) and other U.S. multinationals suggested the global economy may be on stronger footing than previously thought. [ID:nN22177201]

A string of weak U.S. economic data in recent weeks and worries that Europe’s debt crisis could derail its already fragile recovery have put heavy pressure on markets, but there are signs that investors are slowly returning to riskier assets.

Emerging markets equity funds retained some of their momentum from the previous week, with Asia ex-Japan Equity Funds taking in over $800 million for the second week running, according to data from fund-tracking firm EPFR Global. [ID:nTOE66M02J]

Crude oil futures CLc1 steadied above $79 a barrel after jumping to 11-week highs overnight as a potential storm threatened production in the Gulf of Mexico.

Shanghai copper SCFc3 also rose, chasing London which climbed to near two-month peaks, spurred by a weaker dollar and positive economic data on both sides of the Atlantic. [ID:nN22249306] (Editing by Kim Coghill)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Nikkei posts fifth day of losses; eyes on yen

July 23, 2010 By Leave a Comment

July 22 (Reuters) – Japan’s Nikkei slipped 0.6 percent to its fifth straight day of losses and a three-week closing low on Thursday, hurt by a stronger yen after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy.

Investors awaiting the results of European bank “stress tests” later this week were closing positions, while the yen’s rally hit shares of exporters.

The benchmark Nikkei .N225 shed 57.95 points to 9,220.88, its lowest close since July 2, while the broader Topix lost 0.5 percent to 825.48.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , ,

MARKETS-FRANCE-BENELUX/STOCKS =2 PARIS

July 21, 2010 By Leave a Comment

Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com For pan-European market data and news, click on codes in brackets: European Equities speed guide………………. FTSE Eurotop 300 index………………………….FTEU3 DJ STOXX index…………………………………STOXX Top 10 STOXX sectors……………………….PGL.STOXXS Top 10 EUROSTOXX sectors…………………..PGL.STOXXES Top 10 Eurotop 300 sectors………………….PGL.FTEU3S Top 25 European pct gainers……………………PG.PEUR

Top 25 European pct losers…………………….PL.PEUR

Main stock markets: Dow Jones…………….DJI Wall Street report …..[.N] Nikkei 225…………..N225 Tokyo report…………[.T] FTSE 100…………….FTSE London report………..[.L] Xetra DAX…………..GDAXI Frankfurt market stories[.F] CAC-40………………FCHI Paris market stories…[.PA] World Indices………………………………..<0#.INDEX> Reuters survey of world bourse outlook……….EQUITYPOLL1 Western European IPO diary……………………..WEUIPO European Asset Allocation…………………….[EUR/ASSET]

Reuters News at a Glance: Equities….. [TOP/EQE] World stock markets….[GLANCE/STX]

Main currency report: Dollar/euro/yen………………………………….[FRX/]

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Indian shares up 0.3 pct; Reliance, L&T rise

July 21, 2010 By Leave a Comment

MUMBAI, July 20 (Reuters) – Indian shares rose 0.3 percent
on Tuesday led by gains in energy major Reliance Industries
(RELI.BO) and construction conglomerate Larsen & Toubro
(LART.BO), with mostly firmer Asian markets helping.

However, investors were cautious with a drop in U.S.
housing data showing cracks in the recovery of the world’s
largest economy.

Traders were watching foreign funds, who have moved $8.6
billion into Indian equities this year, for direction amid
concern a slower than expected global recovery could affect the
inflows.
By 11:11 a.m. (0541 GMT), the 30-share BSE index .BSESN was
trading up 0.34 percent at 17,989.12, with 19 of its components
gaining.

In the broader market, gainers were almost double the
number losers while 131 million shares changed hands.

“We are trading higher today looking at the strength in
Asian stocks,” said Kunal Sukhani, manager of institutional
equities at Asian Markets Securities.

The MSCI’s measure of Asian markets other than Japan
.MIAPJ0000PUS was up 1.3 percent, while Japan’s Nikkei
.N225 shed 1.2 percent.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For a video on Asian stocks' performance, view show:

link.reuters.com/kap48m

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The BSE index is up 3 percent so far this year on the back
of rebounding domestic economy, while most of its emerging
market peers have dropped.

Reliance Industries, which has the highest weight on the
main index .BSESN, climbed 0.6 percent to 1,062.50 rupees,
while Larsen & Toubro rose 1.1 percent to 1,912.80 rupees.

Sukhani said quarterly earnings would be the key driver for
the market in the near term.

HDFC Bank (HDBK.BO) was up 0.2 percent at 2,055.25 rupees,
a day after the private-sector lender reported its strongest
profit growth in more than a year and highlighted more gains
for the booming industry on robust loan demand. [ID:nSGE66I0EL]

“Quality of earnings continues to improve on the back of
margin expansion, loan book growth, and provisioning pressure,”
Edelweiss said in a note.

“We continue to like the bank’s attractive franchisee and
overall improvement in metrics.”

The stock is just 2.6 percent of its record high hit last
week.

Iron ore exporter Sesa Goa (SESA.BO) rose 1.6 percent after
its consolidated net profit for the June quarter trebled.
[ID:nSGE66J05M]

The share was also helped after a senior government
official told Reuters on Monday India had no plans to curb iron
ore exports. [ID:nSGE66I0EY]

Tata Steel (TISC.BO), the world’s seventh-largest producer
of the alloy, and rose non-ferrous metals producer Sterlite
Industries (STRL.BO) rose 1.1 percent each, while aluminium
maker Hindalco (HALC.BO) gained 0.9 percent.

The sector was supported by gains in regional peers. The
resources index for Asian shares other than Japan
.MIAPJMT00PUS was up nearly 2 percent.

The 50-share NSE index , or Nifty, was up 0.3
percent at 5,402.40.

“We see Nifty to be rangebound between 5,300-5,450 in the
near term due to mixed cues from overseas,” Sukhani said.

STOCKS ON THE MOVE

* MindTree (MINT.BO) shed 5.2 percent to 539 rupees after
its quarterly results disappointed investors, dealers said.
[ID:nWNBS0515]

* Cairn India (CAIL.BO), a unit of Cairn Energy (CNE.L),
was up 0.3 percent at 316.15 rupees as crude oil prices rose
toward $77 a barrel.

MAIN TOP THREE BY VOLUME

* IFCI (IFCI.BO) on 3.3 million shares

* Ramsarup Industries (RASW.BO) on 1.6 million shares

* Unitech (UNTE.BO) on 1.6 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Dollar hovers near lows, eyes on Japan policymakers [FRX/]
* Oil gains towards $77 on expected U.S. inventory drop [O/R]
* Asia shares rise, yen strength in focus [MKTS/GLOB]
* Wall St up on tech, but IBM, TI fall after the bell [.N]
* For closing rates of Indian ADRs INADR

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Nikkei slips 0.9 percent but off earlier lows

July 21, 2010 By Leave a Comment

TOKYO, July 20 (Reuters) – Japan’s Nikkei average fell 0.9 percent but was off earlier lows on Tuesday, with tech shares hit by worry over the pace of U.S. economic recovery, disappointing U.S. corporate results and a strong yen.

Traders returned from a three-day weekend and were playing catch-up with other Asian markets that fell on Monday due to a sharp drop in U.S. consumer sentiment.

Charts suggested a further dip may still lie ahead, with the Nikkei’s MACD, a measure of market momentum, nearing a bearish cross while its slow stochastic — a measure of how oversold the market is and whether it is in a short-term up or down trend — continued to fall.

On Monday, Wall Street rose on hopes for earnings from Texas Instruments (TXN.N) and fellow tech firm International Business Machines (IBM.N), but shares of both slumped in after-hours trade as Texas Instruments’ revenue failed to impress and IBM’s revenue missed expectations. [ID:nN19191611] [ID:nN19215910]

But the dollar edged up against the yen JPY= after falling to a seven-month low on Friday, helping the Nikkei pare losses as short-covering emerged after the benchmark sustained its worst one-day percentage fall in over a month on Friday. [FRX/]

“It’s a sign that the economic recovery is slowing down when companies report profits that are above market expectations but their sales figures remain sluggish,” said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets.

“Still, the market had risen on expectations towards strong profits, and things about sales numbers could have been used as an excuse to sell for now. Companies are at least in a position to produce profits now and hopes for the earnings season are continuing.”

Eyes remain on moves in the currency markets and U.S. earnings results, market players said, with Goldman Sachs (GS.N), Apple Inc (AAPL.O) and Yahoo Inc (YHOO.O) set to report later on Tuesday.

The benchmark Nikkei .N225 shed 81.09 points to 9,327.27 after earlier falling as much as 1.7 percent, while the broader Topix lost 0.8 percent to 834.22.

Japanese markets were closed on Monday for a holiday and on Friday the Nikkei fell nearly 3 percent as investors took profits.

On Monday, the NAHB/Wells Fargo Housing Market index fell more than expected in July to its lowest level since April 2009 after a popular tax credit for homebuyers expired in April, underlining fears about the economic recovery ahead of housing data including housing starts on Tuesday.

“There’s a slight ebbing of risk avoidance but some of the U.S. results are cause for concern, especially some not very good forecasts for later in the year, and this is affecting the Nikkei,” said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.

“A substantial break below 9,200 would leave us with few real support levels until around 9,000, but we’d probably need a substantial drop in either overseas stock markets or a surge in the yen for this to happen.”

Market players said support for the Nikkei was likely to hold for now at 9,200, just under its July 1 close, which was a seven-month closing low.

While charts look bearish, the benchmark is also approaching oversold levels on some fronts. Its relative strength index (RSI) hit 40, its lowest in roughly two weeks, with anything from 30 and below considered oversold, and its slow stochastic was approaching oversold territory.

TECH TROUBLES

Tech shares were hit by disappointment over U.S. corporate results, but pared earlier losses. The dollar was up 0.3 percent against the yen at 86.98 yen.

Chip gear manufacturer Tokyo Electron (8035.T) lost 2.6 percent to 4,695 yen and electronic components maker TDK Corp (6762.T) shed 2 percent to 5,000 yen. Sony Corp (6758.T) fell 2.5 percent to 2,344 yen.

Other exporters also fared poorly. Investors fret about a stronger yen since it eats into exporters’ profits when they are repatriated.

Toyota Motor Co (7203.T) slid 2.2 percent to 3,065 yen and Honda Motor Co (7267.T) fell 2 percent to 2,600 yen.

Shares of Daiwa Securities Group (8601.T), Japan’s second-largest brokerage, declined 2.6 percent to 378 yen after the Nikkei business daily reported the company likely suffered a loss in April-June, as financial market turmoil stemming from the Greek debt crisis took a toll.

The loss was likely between several billion yen and 10 billion yen ($115 million), marking a second consecutive loss for the company, which trails Nomura Holdings Inc (8604.T) in Japan’s mature brokerage market, the Nikkei said.

But shares of Leopalace21 Corp (8848.T) rose 2.7 percent to 232 yen after Credit Suisse lifted its rating on the developer and operator of apartments and hotels to “neutral” following its tumble close to the broker’s target price of 230 yen.

Leopalace’s stock had lost more than half its value over the past three months. Credit Suisse attributed the recent slide to a deterioration in occupancy rates, dwindling orders and unrealised losses on apartments. (Editing by Joseph Radford)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

RPT-GLOBAL MARKETS-Asia shares rise, yen strength in focus

July 21, 2010 By Leave a Comment

HONG KONG, July 20 (Reuters) – Asian stocks rose on Tuesday, looking past weak revenue growth at top U.S. firms and more weak U.S. economic data, as shares of resource firms and banks clawed back some of their recent losses. The Japanese yen hovered near its recent 7-week high against the dollar, amid growing talk of intervention as traders wondered if Tokyo could stomach further yen gains.

The MSCI index of Asia Pacific ex-Japan stocks .MIAPJ0000PUS rose 1 percent, led by gains in resources .MIAPJMT00PUS and financials .MIAPJFN00PUS.

The Nikkei average .N225 fell as much as 1.7 percent as traders returned from a long weekend and caught up with Monday’s losses in the region.

U.S. stocks rose overnight, spurred by optimism ahead of earnings from key tech firms International Business Machines (IBM.N) and chip maker Texas Instruments (TXN.N) which were released after the closing bell.

But both firms failed to impress as their topline revenue growth disappointed markets, highlighting concerns that the global economic recovery is losing steam. [ID:nN19191611] and [ID:nN19215910].

Investors also faced yet more worrisome data from the United States. On Monday, the National Association of Home Builders/Wells Fargo Housing Market index fell more than expected in July to its lowest level since April 2009 after a popular tax credit for homebuyers expired in April. [ID:nTKB006927]

“U.S. earnings and indicators are increasing concern about a slowdown in the economy,” said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

“We could definitely see a test of the downside, though not until later in the week.”

Despite the disappointing IBM and Texas Instrument results, some tech-dependant Asian markets such as Taiwan and South Korea were marginally higher as the outlook for Asian tech firms remained more upbeat.

The Korea Composite Stock Price Index (KOSPI) was up 0.2 percent after opening lower and Taiwan’s main TAIEX share index was up 0.5 percent.

“Big tech companies that have a wider customer bases and good product portfolios should still be doing okay in the third quarter,” said John Chiu, a vice-president at Fuh Hwa Securities Investment Trust.

JAPAN FRETS OVER YEN

The dollar was marginally higher at 86.74 yen JPY=, having hit a seven-month low of 86.25 on Friday, and the euro was steady at $1.2940, having brushed aside Moody’s downgrade of Ireland’s credit rating on Monday and concerns that negotiations between Hungary and international lenders had broken down. For details, see [ID:nLDE66I0FY] [ID:nLDE66H021].

The dollar was bid up by Japanese importers, but was still within striking distance of a seven-month low versus the yen leading many market players to look to what authorities in Japan would do if the yen climbed to the 85 level.

The market was looking to a press conference by Finance Minister Yoshihiko Noda for clues on Japanese policymakers’ pain threshold.

Japan’s fragile economic recovery has been largely due to surging exports, offsetting persistently weak domestic demand, and further yen gains threaten to erode its export competitiveness.

Hong Kong’s benchmark Hang Seng index .HSI was up 1 percent, boosted by banks which rose after China changed rules to allow the sale of yuan-denominated financial products in Hong Kong, giving companies greater access to yuan funding. [ID:nTOE66I02Q]

Standard Chartered Plc (STAN.L)(2888.HK), which immediately announced it would offer yuan-denominated structured investments to its retail and wholesale clients, rose 1.4 percent and BOC Hong Kong (Holdings) (2388.HK) was up 1.7 percent.

Oil futures CLc1 rose about 25 cents towards $77 a barrel, supporting shares of energy companies, as forecasts for a fourth consecutive weekly drop in U.S. crude inventories countered fears that a slowdown in the global recovery would curb fuel demand. [O/R] (Additional reporting by Elaine Lies in TOKYO and Baker Li in TAIPEI) (Editing by Kim Coghill)

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MARKETS-FRANCE-BENELUX/STOCKS =2 PARIS

July 16, 2010 By Leave a Comment

Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com For pan-European market data and news, click on codes in brackets: European Equities speed guide………………. FTSE Eurotop 300 index………………………….FTEU3 DJ STOXX index…………………………………STOXX Top 10 STOXX sectors……………………….PGL.STOXXS Top 10 EUROSTOXX sectors…………………..PGL.STOXXES Top 10 Eurotop 300 sectors………………….PGL.FTEU3S Top 25 European pct gainers……………………PG.PEUR

Top 25 European pct losers…………………….PL.PEUR

Main stock markets: Dow Jones…………….DJI Wall Street report …..[.N] Nikkei 225…………..N225 Tokyo report…………[.T] FTSE 100…………….FTSE London report………..[.L] Xetra DAX…………..GDAXI Frankfurt market stories[.F] CAC-40………………FCHI Paris market stories…[.PA] World Indices………………………………..<0#.INDEX> Reuters survey of world bourse outlook……….EQUITYPOLL1 Western European IPO diary……………………..WEUIPO European Asset Allocation…………………….[EUR/ASSET]

Reuters News at a Glance: Equities….. [TOP/EQE] World stock markets….[GLANCE/STX]

Main currency report: Dollar/euro/yen………………………………….[FRX/]

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Nikkei slips from 3-wk highs on investor economy worry

July 16, 2010 By Leave a Comment

TOKYO, July 15 (Reuters) – Japan’s Nikkei average fell 1 percent on Thursday after hitting three-week highs the day before, hovering near support after a Federal Reserve statement expressing concerns about the U.S. recovery fed investor jitters.

Asian stock markets slightly pared falls after data showing China’s annual economic growth eased to 10.3 percent in the second quarter, but inflation at the producer and consumer level also eased in June from May, reducing the need for further policy tightening. [ID:nTOE66D06L] [ID:nTOE66D060]

The figures were announced just after the bechmark Nikkei ended morning trade, and sent S&P futures SPc1 to turn positive.

“The Nikkei is now stuck in a place where it’s hard to go either significantly higher or lower. Investors are trying to understand if signs of a slowdown in U.S. economic data show the recovery is at a lull, or if it’ll continue at a slow pace,” said Junichi Misawa, a senior fund manager at STB Asset Management.

He also said the China data initially helped the stock market trim earlier losses, but investors seem to lack a consensus on how to interpret them at this point.

“Stock markets trimmed losses after the China data but they are under pressure again. That shows how fluid the markets’ views still are on China. If the data was too strong it would spark concerns and if it was too weak it could lead to worries about a slowdown,” Misawa said.

The benchmark Nikkei .N225 shed 96.00 points to 9,699.24, after falling as low as 9,667.00 at one stage. On Wednesday, the index rose nearly 3 percent to hit its highest close since late June.

The broader Topix lost 1.5 percent to 857.84.

Market players said the Nikkei was slightly overstretched going into the day and it was no surprise it was taking a bit of a breather.

Minutes of the Fed’s June meeting showed policy makers felt they should be ready to consider additional steps to boost the U.S. economy if an already softening outlook worsens, adding to worries stoked by a report showing June retail sales fell more than expected. [ID:nN14148574] [ID:nN14122226]

“A lot of investors are quite sensitive to anything the Federal Reserve says, and that kind of statement has chilled the recent rapid growth of market optimism,” said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.

News from Japan’s central bank has little impact on the market. The Bank of Japan revised up its economic forecast for the current fiscal year but reiterated that it will keep monetary policy easy, with deflation likely to persist at least until early 2011. [ID:nTKU106138]

The Nikkei was hovering just above support provided by its 25-day moving average, currently at 9,680, and additional support on its daily Ichimoku charts at around 9,670, which was its kijun-sen.

The kijun-sen is an indicator of medium-term trends that can be either support or resistance but is currently pointing sideways, while Ichimoku charts are a popular charting method among Japanese traders.

But other momentum indicators are mixed, with the Nikkei’s slow stochastic — a measure of how oversold the market is and whether it is in a short-term up or down trend — falling to just below overbought territory. Yet its MACD continues to rise after a bullish cross.

“Longer-term, the Nikkei may still be in a bit of a downtrend. But it’s on the upper end of this and sharp slides are unlikely,” added Yamagishi.

CARS, EXPORTERS, TECH

Automakers lost ground after helping boost the broader market on Wednesday, when shares of Japan’s top three automakers all jumped about 4 percent.

Shares of Nissan Motor Co (7201.T), Japan’s No.3 automaker, slid 3 percent to 650 yen after it said it would idle two U.S. assembly plants for three days starting on Thursday because of a shortage of electronic control units from Hitachi Ltd (6501.T). [ID:nN14156554]

Nissan said earlier this week it would halt part of its vehicle production in Japan for three days starting on Wednesday after Hitachi said delivery of engine control units was running behind schedule. [ID:nTOE66C052]

Top automaker Toyota Motor Corp (7203.T) slid 2.6 percent to 3,165 yen and Honda Motor Co (7267.T), the No.2, retreated 2.1 percent to 2,684 yen.

Techs and exporters, some of the main impetus behind the Nikkei’s climb on Wednesday, fell broadly as well, with gains by the yen adding weight.

Oki Electric Industry (6703.T) lost 3.9 percent to 74 yen after Goldman Sachs downgraded it to “sell”, citing a possible undershooting of guidance for the business year ending next March.

Takeda Pharmaceutical (4502.T) fell 1.9 percent to 3,945 yen as a rival to Takeda’s flagship diabetes drug won support from a U.S. panel for sustained marketing approval. [ID:nN14274445] (Editing by Michael Watson)

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Nikkei powers up on Intel, shoots above resistance

July 15, 2010 By Leave a Comment

TOKYO, July 14 (Reuters) – Japan’s Nikkei surged nearly 3 percent on Wednesday, breaking above key resistance, with chip-related shares powering higher after Intel results beat expectations to ease fears about the U.S. economic recovery.

In active trade, the benchmark also got a boost from Komatsu (6301.T), which lifted its full-year forecast by 14 percent, citing better-than-expected first-half sales in Asia and Latin America, as well as a pick up in demand in Japan and the United States. [ID:nTOE66C04V]

Resilient demand for personal computers and servers helped Intel Corp’s (INTC.O) margin and revenue forecasts, out after the bell on Tuesday, blast past expectations, allaying fears of a possible tech spending slowdown and setting an upbeat tone for the industry’s earnings season. [ID:nN12197658]

The announcement came on the heels of better-than-expected quarterly earnings from Alcoa (AA.N) the day before, giving heart to investors who had fled to the sidelines on jitters about the economic recovery. [.N]

“There’s been growing doubts about the health of the U.S. economy, but these better-than-expected Intel results have really changed sentiment in the market,” said Toshiyuki Kanayama, a market analyst at Monex Inc.

“Wall Street rose strongly, there was Intel, and the yen is also weaker. A lot of good factors for stocks are now lining up.”

Some analysts said the Nikkei was playing catch-up with overseas markets after it dipped yesterday following the Alcoa results. By contrast, the FTSE 100 .FTSE rose 2 percent and the Nasdaq .IXIC 2 percent as well. The Dow gained 1.5 percent.

The benchmark Nikkei .N225 surged 2.7 percent, or 258.01 points, to 9,795.24, while the broader Topix gained 1.9 percent to 870.73.

Trade was active, with 2.3 billion shares changing hands on the Tokyo exchange’s first section, the heaviest volume in more than a month. Advancing shares outnumbered declining ones by more than 7 to 1.

Market players said short-covering emerged after the Nikkei broke above its 25-day moving average at around 9,960 and additional resistance on its daily Ichimoku charts at around 9,670, which was its kijun-sen.

The kijun-sen is an indicator of medium-term trends that can be either support or resistance but is currently pointing sideways, while Ichimoku charts are a popular charting method among Japanese traders.

In addition, the Nikkei’s MACD continued rising after a bullish cross.

But some in the market remained wary, noting that further rises could be hard to achieve.

“There’s selling of futures at around 9,800, and this is likely to cap gains for now,” said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

“Also, even though Intel may be good, there’s some concern about the bank earnings later this week, with good results for them necessary for the market to go much higher.”

JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) both announce this week.

LONG POSITIONS

An accumulation of long positions in the market, especially in blue-chip exporters, means that any further rises are likely to take time, Kanayama added.

The Nikkei’s next target is 10,000 and then around 10,250, the level of its June high.

Toyota Motor Corp (7203.T) and other carmakers surged, with Toyota up 4 percent to 3,250 yen and Honda Motor (7267.T) climbing 3.9 percent to 2,741 yen. Gains were seen as mainly due to a slightly weaker yen and the boost in overall sentiment.

Toyota said on Wednesday its investigation of nearly 2,000 cases of unintended acceleration had found no problem with its electronic throttle system, and that driver error was to blame in some cases. [ID:nTOE66D02P]

But Kuramochi said he thought the Toyota recall issue had largely faded as a factor for the market.

Chip gear manufacturer Tokyo Electron (8035.T) and other tech shares gained after the Intel results, with Tokyo Electron shares climbing 4.1 percent to 5,110 yen.

Chip-tester maker Advantest Corp (6857.T) shot up 5.7 percent to 2,013 yen, and Nikon (7731.T), a maker of steppers, advanced 2.1 percent to 1,644 yen.

Komatsu gained 5.4 percent to 1,790 yen.

Another high-powered performer was Mizuho Financial Group (8411.T), which rose 3 percent to 139 yen after the banking group set the price of its new shares for public offering on Tuesday. [ID:nTOE66C06H]

A strategist at a Japanese brokerage said short-covering is expected to continue supporting the stock in the near term, as speculators had shorted the shares ahead of the price-fixing, in anticipation of sell-offs by some investors who had hoped for a low price for the new stock. (Reporting by Elaine Lies; Editing by Joseph Radford)

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Nikkei surges on Intel-fed optimism, Komatsu climbs

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Japan’s Nikkei surged 2.7 percent on Wednesday to break above key resistance, with chip-related shares powering higher after Intel results beat expectations to ease fears about the U.S. economic recovery.

In active trade, the benchmark also got a boost from Komatsu (6301.T), which lifted its full-year forecast by 14 percent, citing better-than-expected first-half sales in Asia and Latin America, as well as a pick up in demand in Japan and the United States. [ID:nTOE66C04V]

The benchmark Nikkei .N225 climbed 258.01 points to 9,795.24, cracking resistance at the level of its 25-day moving average around 9,660. The broader Topix rose 1.9 percent to 870.73. (Reporting by Elaine Lies)

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REFILE-Nikkei surges past resistance, gains 2.8 pct on Intel

July 15, 2010 By Leave a Comment

TOKYO, July 14 (Reuters) – Japan’s Nikkei surged nearly 3 percent on Wednesday to shoot above a key resistance level, with chip-related shares powering higher after Intel results beat expectations, easing fears about the U.S. economic recovery.

In active trade, the benchmark climbed well past resistance at around 9,677, the level of its 25-day moving average, which it broke above for the first time in three weeks.

Resilient demand for personal computers and servers helped Intel Corp (INTC.O)’s margin and revenue forecasts, out after the bell, blast past expectations, allaying fears of a possible tech spending slowdown and setting an upbeat tone for the industry’s earnings season. [ID:nN12197658].

The announcement came on the heels of better-than-expected quarterly earnings from Alcoa (AA.N) the day before, giving heart to investors who had fled to the sidelines on jitters about the economic recovery. [.N]

“There’s been growing doubts about the health of the U.S. economy, but these better-than-expected Intel results have really changed sentiment in the market,” said Toshiyuki Kanayama, a market analyst at Monex Inc.

“Wall Street rose strongly, there was Intel, and the yen is also weaker. A lot of good factors for stocks are now lining up.”

The benchmark Nikkei .N225 surged 2.8 percent or 270.13 points to 9,807.36, while the broader Topix gained 2.3 percent to 874.19.

Market players said short-covering emerged after the Nikkei broke above its moving average and additional resistance on its daily Ichimoku charts at around 9,670 which was its kijun sen, an indicator of medium-term trends. Ichimoku charts are a popular charting method among Japanese traders.

The Nikkei also broke above the middle line of its Bollinger Bands, around 9,643, after being stuck below it for the past several trading days, while its MACD continued to rise.

But some in the market remained wary, noting that further rises could be hard to achieve.

“There’s selling of futures at around 9,800, and this is likely to cap gains for now,” said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

“Also, even though Intel may be good, there’s some concern about the bank earnings later this week, with good results for them necessary for the market to go much higher.”

JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) both announce this week.

LONG POSITIONS

An accumulation of long positions in the market, especially in blue-chip exporters, means that any further rises are likely to take time, Kanayama added.

The Nikkei’s next target is 10,000 and then around 10,250, the level of its June high.

Toyota Motor Corp (7203.T) and other carmakers surged, with Toyota up 4.6 percent to 3,270 yen and Honda Motor (7267.T) climbing 4.3 percent to 2,753 yen and the gains were seen as mainly due to a slightly weaker yen the boost in overall sentiment.

An analysis of dozens of data recorders from Toyota vehicles involved in accidents blamed on sudden acceleration suggests some drivers were at fault, according to the Wall Street Journal. [ID:nN1396064] But Kuramochi said he thought the Toyota recall issue had largely faded as a factor for the market.

Chip gear manufacturer Tokyo Electron (8035.T) and other tech shares gained after the Intel results, with Tokyo Electron shares climbing 3.9 percent to 5,100 yen.

Chip-tester maker Advantest Corp (6857.T) shot up 5.5 percent to 2,010 yen, and Nikon (7731.T), a maker of steppers, advanced 2.1 percent to 1,644 yen.

Shares of Komatsu (6301.T), the world’s No.2 construction machinery maker, shot up 6 percent to 1,799 yen after it lifted its full-year profit forecast by 14 percent, citing better-than-expected first-half sales in Asia and Latin America, as well as a pick up in demand in Japan and the United States. [ID:nTOE66C04V]

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MARKETS-FRANCE-BENELUX/STOCKS =2 PARIS

July 15, 2010 By Leave a Comment

Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com For pan-European market data and news, click on codes in brackets: European Equities speed guide………………. FTSE Eurotop 300 index………………………….FTEU3 DJ STOXX index…………………………………STOXX Top 10 STOXX sectors……………………….PGL.STOXXS Top 10 EUROSTOXX sectors…………………..PGL.STOXXES Top 10 Eurotop 300 sectors………………….PGL.FTEU3S Top 25 European pct gainers……………………PG.PEUR

Top 25 European pct losers…………………….PL.PEUR

Main stock markets: Dow Jones…………….DJI Wall Street report …..[.N] Nikkei 225…………..N225 Tokyo report…………[.T] FTSE 100…………….FTSE London report………..[.L] Xetra DAX…………..GDAXI Frankfurt market stories[.F] CAC-40………………FCHI Paris market stories…[.PA] World Indices………………………………..<0#.INDEX> Reuters survey of world bourse outlook……….EQUITYPOLL1 Western European IPO diary……………………..WEUIPO European Asset Allocation…………………….[EUR/ASSET]

Reuters News at a Glance: Equities….. [TOP/EQE] World stock markets….[GLANCE/STX]

Main currency report: Dollar/euro/yen………………………………….[FRX/]

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MARKETS-FRANCE-BENELUX/STOCKS =2 PARIS

July 14, 2010 By Leave a Comment

Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com For pan-European market data and news, click on codes in brackets: European Equities speed guide………………. FTSE Eurotop 300 index………………………….FTEU3 DJ STOXX index…………………………………STOXX Top 10 STOXX sectors……………………….PGL.STOXXS Top 10 EUROSTOXX sectors…………………..PGL.STOXXES Top 10 Eurotop 300 sectors………………….PGL.FTEU3S Top 25 European pct gainers……………………PG.PEUR

Top 25 European pct losers…………………….PL.PEUR

Main stock markets: Dow Jones…………….DJI Wall Street report …..[.N] Nikkei 225…………..N225 Tokyo report…………[.T] FTSE 100…………….FTSE London report………..[.L] Xetra DAX…………..GDAXI Frankfurt market stories[.F] CAC-40………………FCHI Paris market stories…[.PA] World Indices………………………………..<0#.INDEX> Reuters survey of world bourse outlook……….EQUITYPOLL1 Western European IPO diary……………………..WEUIPO European Asset Allocation…………………….[EUR/ASSET]

Reuters News at a Glance: Equities….. [TOP/EQE] World stock markets….[GLANCE/STX]

Main currency report: Dollar/euro/yen………………………………….[FRX/]

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Nikkei down on China worry; earnings hope a support

July 14, 2010 By Leave a Comment

TOKYO, July 13 (Reuters) – Japan’s Nikkei edged lower on Tuesday, weighed as Shanghai shares fell after China said it had no plans to relax tougher property measures anytime soon, but falls were checked by hopes for U.S. earnings later in the day.

Though the market rose in early trade on broad short-covering as traders took heart from Alcoa’s (AA.N) stronger than expected quarterly profit, resistance appeared to be growing around 9,660, roughly the level of the Nikkei’s 25-day moving average.

China’s key stock index fell nearly 2 percent after the government said it would continue to rein in speculation in the country’s red-hot property sector, weighing on shares throughout Asia. [ID:nTST000264]

“There’s a lot of Chinese economic indicators coming out later this week, and investors have gotten pretty nervous ahead of the numbers,” said Takashi Ushio, head of the investment strategy division at Marusan Securities.

“But Alcoa’s results were quite good and we have Intel later today, with both of these offering support.”

Intel Corp (INTC.O) reports later on Tuesday, and other companies reporting this week include JPMorgan Chase & Co (JPM.N) and General Electric Co (GE.N).

“Although there’s a sense of selling fatigue, investor sentiment is still bearish, and the market is looking for a catalyst. Corporate earnings could be one,” said Naoki Koga, a senior fund manager at Toyota Asset Management.

“Intel’s earnings are a focus because they always illustrate a trend.”

The benchmark Nikkei .N225 erased morning gains to edge down 0.1 percent to 9,537.23, while the broader Topix shed 0.4 percent to 854.39.

U.S. stocks eked out small gains in thin trade on Monday before Alcoa, the largest U.S. aluminium producer, posted a stronger-than-expected second-quarter profit and raised its estimate for global aluminium consumption, sending its shares up 3 percent. [ID:nN12206110]

Chairman and Chief Executive Klaus Kleinfeld told Wall Street analysts that strong industry fundamentals were expected to drive demand for aluminium in the next 10 years with average growth of 6 percent a year.

But by afternoon U.S. stock futures SPc1 had given up earlier gains to edge down 0.2 percent.

The Nikkei’s next upward target is around 9,660, its 25-day moving average, which is a proxy for a one-month moving average that is closely watched in Japan. On daily Ichimoku charts, a popular charting method among Japanese traders, its kijun-sen — an indicator of medium-term trends — comes in around 9,671, becoming additional resistance.

The next target after that lies around 10,250, roughly the level of the Nikkei’s June high.

The technical picture is growing increasingly bright, with the Nikkei’s MACD, a measure of market momentum, heading up after a bullish cross.

CHINA BRUISING

Shares with large exposure to China slipped, with Hitachi Construction (6305.T) down 1 percent to 1,717 yen and Komatsu (6301.T), the world’s second-largest maker of earth-moving equipment, down 1.6 percent to 1,698 yen.

Shanghai copper slipped and London prices extended Monday’s falls on investor worry on the global economy, with trading companies taking a hit as a result.

Itochu Corp (8001.T) shed 1.7 percent to 704 yen and Sumitomo Corp (8053.T) lost 1.3 percent to 932 yen. Mitsui O.S.K. Lines (9104.T), which rose in morning trade, slipped 1.2 percent to 582 yen.

But a broad range of exporters clung to gains made on morning short-covering, with Canon Inc (7751.T) up 0.3 percent at 3,460 yen and Tokyo Electron (8035.T) up 1.7 percent at 4,910 yen.

Shares of Fast Retailing (9983.T), the operator of the Uniqlo casual-clothing chain, climbed 1 percent to 12,700 yen after it said it would set up a venture with Bangladeshi microfinance specialist Grameen Bank. [ID:nTOE66C03N]

Denso Corp (6902.T), Japan’s No.1 car parts maker, rose 1.3 percent to 2,658 yen after it announced it would establish an aftermarket sales company in Dubai in November to strengthen its business in the Middle East and North Africa.

Trade picked up, with 1.88 billion shares changing hands on the Tokyo exchange’s first section, the highest in two weeks. Declining shares outpaced advancing ones by more than 3 to 1.

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Nikkei gives up gains as China worry weighs

July 14, 2010 By Leave a Comment

July 13 (Reuters) – Japan’s Nikkei edged lower on Tuesday, weighed down as Shanghai shares fell after China said it had no plans to relax tougher property measures anytime soon, though falls were checked by hopes for U.S. earnings later in the day.

China’s key stock index .SSEC fell 1.6 percent after the government said it would continue to rein in speculation in the country’s red-hot property sector, weighing on shares throughout Asia. [ID:nTST000264]

The benchmark Nikkei .N225 shed 0.1 percent or 10.88 points to 9,537.23 after earlier rising nearly 1 percent. The broader Topix fell 0.4 percent to 854.39.

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