Nikkei set to gain on Wall St; eyes on yen

TOKYO (BestGrowthStock) – Japan’s Nikkei average is expected to rise on Friday after China said Europe remains a key investment market for its foreign-exchange reserves, soothing jittery financial markets and sending U.S. stocks (Read more about the stock market today. ) sharply higher.

China’s central bank said a Financial Times report on Wednesday that Beijing was concerned about its euro zone bond holdings was groundless.

The report had driven the euro to a near four-year low against the dollar and near an 8-1/2-year low against the yen and pressured global stocks as investors worried that Europe’s debt woes would spiral into a larger financial crisis.

“Shares of exporters are likely to gain after big gains in U.S. stocks (Read more about the stock market today. ) and due to stabilizing moves in the currency market,” said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets.

“Investors had been rapidly shrinking their holdings of risky assets lately, but if the market decides such a move has run its course, the market could return to a calmer state.”

Nikkei futures traded in Chicago closed at 9,790, up 1.5 percent from the Osaka close, pointing to a higher start.

The benchmark Nikkei (.N225: ) is likely to move between 9,550 and 9,850, market players said. It rose 1.2 percent on Thursday to 9,639.72, coming off a six-month low as investors scooped up battered shares on dips.

Toyota group companies are back to hiring contract workers after almost a year, the Nikkei business daily reported.

As production levels remain robust, the company will recruit about 350 new workers starting this July, the paper said.

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(Reporting by Aiko Hayashi; Editing by Michael Watson)

Nikkei set to gain on Wall St; eyes on yen