Nikkei set to rebound on yen's pullback, Wall St rise; China data eyed
TOKYO, Aug 9 (Reuters) - The Nikkei share average is set to rebound on Friday after suffering steep losses in the previous two sessions, likely helped along by the yen's pull back from a seven-week high against the dollar and gains on Wall Street. Investors will also be looking for leads from a batch of Chinese economic data due later in the session. The benchmark Nikkei is likely to trade between 13,500 and 14,000, strategists said, after shedding 1.6 percent to 13,605.56 on Thursday. The broader Topix sagged 1.4 percent to 1,139.59. The Nikkei lost 5.5 percent over the past two sessions. Nikkei futures in Chicago closed at 13,650 on Thursday, up 0.2 percent from the Osaka close of 13,620. "The market is likely to open higher as the recent slide was just too steep and groundless. I think the Nikkei could test the 14,000 mark," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management. "It's going to be another futures-driven trade, with the volume remaining low. Large-cap stocks may lead the rises after the recent heavy sell-off." said Akino. As a weaker yen tends to make export-reliant Japan's products more competitive in the global market, blue-chip exporters are also expected to outperform the overall market on Friday. The Japanese currency was last traded at 96.71 yen against the dollar, moving away from a seven-week high of 95.81 yen touched on Thursday. The yen is down 11 percent versus the dollar for the year, weighed by the Bank of Japan's radical monetary stimulus launched in April to end years of stubborn deflation and foster growth. Analysts say investors are awaiting fresh cues from China's July economic data. China's inflation, output, urban investment and retail sales will be released later on Friday. Loan growth and money supply figures could be released any time between Aug 8-15. China is Japan's second biggest export market. The Nikkei is up 31 percent this year, spurred by the Japanese government's fiscal expansionary policy and the Bank of Japan's aggressive monetary stimulus.
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