TOKYO, Feb 14 — Japan’s Nikkei share average is expected to gain today after the resignation of Egyptian President Hosni Mubarak eased investor concerns about political instability and lifted US stocks.
After a three-day weekend in Japan, exporters including automakers and consumer electronics makers are likely to get an additional boost from a stronger dollar against the yen.
“With (Mubarak’s) resignation, excessive investor anxiety is receding and concerns about a rise in energy prices are also abating,” said Hiroichi Nishi, general manager at Nikko Cordial Securities.
“We have also been seeing solid corporate earnings, and the market is likely to test its recent high,” he said. The Nikkei hit this year’s intraday high at 10,701.92 on Wednesday last week, its highest level since May 6.
Before the open, market participants will be monitoring Japanese gross domestic product data for the October-December quarter.
Analysts also said that investors are cautiously awaiting the outcome of Chinese economic indicators today and tomorrow, including the country’s trade balance and consumer price index.
Nikkei futures traded in Chicago ended at 10,715 on Friday.
The benchmark Nikkei .N225 ended down 0.1 percent or 12.18 points at 10,605.65 on Thursday. Japanese financial markets were closed on Friday for a national holiday.
Analysts said the Nikkei may trade between 10,600 and 10,750 today.
STOCKS TO WATCH
Olympus Corp
The camera and endoscope maker cut operating profit forecast by 9.4 per cent to ¥48 billion (RM1.76 billion) for the year ending in March, as its digital camera business has been hurt by stronger yen and intensifying competition.
The revised forecast was below an average estimate of 49.6 billion yen in a poll of 14 analysts by Thomson Reuters I/B/E/S.
Iseki & Co
The farm equipment maker cut operating profit forecast by 23 per cent to 2.7 billion yen for the year ending in March, citing weaker-than-expected sales in Japan, North American and Europe.
The revised forecast was below an average estimate of ¥4.35 billion in a poll of 2 analysts by Thomson Reuters I/B/E/S. — Reuters
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