Nikkei gains on BOJ stimulus optimism, with tailwind from Wall Street

domingo 24 de julio de 2016 22:55 GYT

* Nintendo shares give back some recent gains

* Fed will also meet this week, but spotlight is on BOJ

TOKYO, July 25 (Reuters) - Japan's Nikkei share average got off to a bright start on Monday, buoyed by gains on Wall Street and hopes that the Bank of Japan will unveil stimulus steps later this week.

But shares of Nintendo Co lost some of their recent lustre, tumbling as much as 18 percent after the company said smash-hit mobile game Pokemon GO would have only a limited impact on its earnings.

The Nikkei stock index rose 0.4 percent to 16,690.60, moving back toward seven-week intraday highs touched on Thursday last week. In the previous week, the Nikkei had gained 0.8 percent.

"I'd say there's probably a great chance of the Nikkei testing the upside of its range," said Yutaka Miura, senior technical analyst at Mizuho Securities, who sees downside support at 16,000 points, in a market that has been facing resistance around 17,000.

U.S. stock prices marked four straight weeks of gains last week, with the S&P 500 setting another record closing high on Friday.

The U.S. Federal Reserve will meet this week but is all but certain to keep interest rates on hold on Wednesday, with investors' focus mainly on what the Bank of Japan decides to do. A majority of economists surveyed by Reuters expect Japan's central bank to take easing steps at its two-day meeting that ends on Friday.

The Japanese government is also putting together a massive spending package worth about 20 trillion yen ($187.8 billion), government sources told Reuters last week, though actual public spending will be far less than the headline number suggests.   Continuación...