Nikkei seen moving higher after U.S. rally

By Staff
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Google Oneindia News

Tokyo, Dec 28: The Nikkei share average is likely to again push toward its highest close since May on Thursday as shares of technology firms such as Advantest Corp. gain after a rally in U.S. stocks and on the belief that Japanese stocks have lagged global equity markets.

After a year moving sideways, the Nikkei looks underpriced compared with strong advances in the United States and other major markets, said Ken Masuda, a senior dealer in equities at Shinko Securities.

''No matter how you look at it, Japanese stocks are laggards,'' Masuda said.

''After the rally on Wall Street we are likely to see buying here,'' he said.

However, trade activity may remain slow as many market participants are away for year-end holidays.

Nikkei futures pointed to a rise in the market. Futures contracts expiring in March finished at 17,335 in Chicago 75 points above their close in Osaka The Nikkei is likely to move between 17,200 and 17,350, market participants said.

The benchmark average booked its highest close in 7-{ months on Wednesday, climbing 0.31 percent to 17,223.15.

U.S. stocks rallied, with the Dow Jones industrial average ending at a record above 12,500 and the Nasdaq composite index climbing 0.73 percent to 2,431.22.

STOCKS TO WATCH -- Japan Petroleum Exploration Co. Ltd. (JAPEX) T> JAPEX said on Wednesday it has won an exploration block in Indonesia, along with the UK's Premier Oil and state-owned Kuwait Foreign Petroleum Exploration Company (KUFPEC).

-- Nippon Oil Corp. T> Nippon Oil said on Wednesday it would reduce its crude refining volumes for January by 6 percent from a year earlier as unseasonably warm weather has sharply curtailed heating fuel sales in December.

-- Hisamitsu Pharmaceutical Co. Inc. T> The drug maker said it was preparing a new drug application in Japan for its Mohrus tape-type patch to treat rheumatoid arthritis after phase III clinical trials showed a significant difference between the patch and a placebo.


Reuters

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