Nikkei seen in tight range; eyes on yen, Toshiba

TOKYO (BestGrowthStock) – Japan’s Nikkei average is likely to move narrowly on Tuesday following gains on Wall Street after the passage of a bill overhauling the U.S. healthcare system lifted related stocks. Investors will closely watch currency moves.

Toshiba Corp (6502.T: ) will likely draw attention after the Nikkei business daily said Toshiba and Microsoft Corp (MSFT.O: ) Chairman Bill Gates would team up to develop a next-generation nuclear reactor that can operate for up to 100 years without refueling.

“Unless dollar/yen rapidly falls to 89 yen, the market will likely be range-bound,” said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

“The global economy has been steadily improving and hopes are growing for domestic companies’ earnings for the next business year. Friday is also the last day for investors to buy many Japanese stocks and still get dividends on them (for the year), which is likely to limit selling.”

The Nikkei is seen moving between 10,700 and 10,850 on Tuesday, market players said. It rose 0.8 percent on Friday to end at 10,824.72. It rose 0.7 percent on the week, for its sixth straight weekly gain.

Japanese markets were closed on Monday for a national holiday.

This week’s focus events include a summit of European Union leaders on Thursday and Friday, who will discuss aid to Greece.

The euro rebounded from three-week lows on an improvement in risk appetite, but was still under pressure ahead of the summit. The dollar was steady above 90 yen in early Asia trade.

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(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)

Nikkei seen in tight range; eyes on yen, Toshiba