TOKYO, March 30 (Reuters) - Japan's Nikkei stock average is set to make modest gains on Wednesday after rising U.S. bond yields lifted the dollar against the yen and after Wall Street edged higher, albeit in thin trade.
The dollar rose to 82.51 yen on Tuesday, its highest in more than two weeks and above the 81.98 peak of March 18, the day Japanese authorities intervened to stop runaway yen gains.
"U.S. stock moves were firm, and in foreign exchange, we are seeing a shift to yen weakness," said Takashi Hiroki, chief strategist at Monex Securities.
"But a lot of uncertainty remains over the situation at the nuclear plant and investors are going to be mindful of recent ranges."
Analysts said they expect the benchmark Nikkei to move
between 9,400 and 9,600. Nikkei futures last traded in Chicago
<2NKc1> at 9,510, 60 points above the Osaka
The Nikkei fell 0.2 percent, or 19.45 points, to 9,459.08 on Tuesday although it had fallen as low as 9,317.38 at one stage.
The weaker yen will help support shares of automakers, some of which started to cut output in North America due to shortages of parts after the earthquake, said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets.
A steady rise in U.S. yields gained traction this week as several Federal Reserve policymakers said the central bank would have to start tightening monetary policy soon to avoid inflation.
St. Louis Fed President James Bullard, a non-voting member of the Fed's rate-setting committee, said on Tuesday the U.S. economy was strong enough to curtail the Fed's $600 billion bond-buying program by $100 billion. [ID:nLDE72S0RJ]
STOCKS TO WATCH
- Honda Motor Co
Honda will cut production at its U.S. and Canadian automotive plants starting Wednesday due to disruptions in the supply of auto parts after the Japanese earthquake more than two weeks ago. [ID:nN29299382]
- Toyota Motor Corp
Toyota told North American dealers to curtail orders of replacement parts to ensure an adequate supply due to overall disruptions in Japan. [ID:nN29258412]
- Nissan Motor Co
Nissan expects April output at its China unit to fall about 10 percent below target, hit by supply chain disruptions after the disaster in eastern Japan, the Nikkei business daily reported. [ID:nL3E7ET2Z5]
- Hitachi Ltd
Hitachi partially resumed operations at its biggest factory complex on Tuesday with output expected to return to pre-disaster levels next month, the Nikkei business daily said. [ID:nL3E7ET31A] (Reporting by Edwina Gibbs; Editing by Chris Gallagher) Reuters Terminal users can see other related news and rates by double-clicking on: All Nikkei indices <0#.NIKKEI> All shares listed on The benchmark Nikkei ended the day up 1.1 percent or 101.12 points at 9,536.13, Nikkei-225 <0#.N225> N225 index TOPIX index Nikkei Japan 1000 TOPIX sector data Nikkei 300 index TOPIX futures data <0#JTI:> Osaka N225 data <0#JNI:> Chicago N225 data <0#NK:> Top 30 by volume Top 30 by value Total volume Total value 1st section sector RICs All TSE weighted avg Top 30 gainers by pct Top 30 losers by pct Top 30 net gainers Top 30 net losers
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