You are here: Home » International » News » Markets
Business Standard

Nikkei set to rise on end-of-month short-covering

Despite uncertainty surrounding Europe, Nikkei ended 1.7% up on Thurs to its highest close in 6 weeks

Reuters  |  Tokyo 

Japan's share average is likely to rise on Friday as a spurt of month-end short covering winds back quarterly losses, although early trading may be depressed after EU leaders ended the first day of a summit at loggerheads.

The has fallen 12% so far in the second quarter, which ends today, wiping out much of the first-quarter's 19.3% surge, the biggest first-quarter gain in 24 years.

Market players said the was likely to trade between 8,750 to 8,950, potentially dipping initially before gains accelerate into the afternoon session as investors unravel their short bets.

"Hopes for any significant progress at the have already evaporated, but if they don't even agree on the details of the Spanish bank bailout and hint that the will drop rates, there will be disappointment," said Masayuki Doshida, senior market analyst at Rakuten Securities.

Euro zone leaders are to conclude the two-day meeting later on Friday to discuss how to tackle an expanding debt zone crisis. On Thursday, Italian and Spanish leaders refused to sign a growth package until Germany agreed to a short-term plan to reduce the cost of their credit.

futures in Chicago closed at 8,835, down 0.4% from the close in of 8,870.

Despite the uncertainty surrounding Europe, the ended 1.7% up on Thursday to its highest close in six weeks, buoyed by investors indulging in "window dressing" as the month and second-quarter drew to a close.

However, market watchers said trading has been thin recently, making the index's gains less significant, and that it could make a reversal in



Holdings is to cut top executives pay and may halt some operations as it attempts to solve an insider trading scandal, according to sources.

A management committee is to meet on Friday to approve the pay cuts and other measures after an internal investigation.


Motor Corp announced at a shareholders meeting on Wednesday that it is planning to increase its capital expenditure by over 60 percent, spending an average of 200 billion yen through 2016, according to the business daily.


Group Holdings is expected to post an operating profit of about 35 billion yen for the six months ending in June, a drop of 5 percent year-on-year, due to high promotion costs for nonalcoholic beverages, according to the daily.


First Published: Fri, June 29 2012. 05:11 IST