Strong resistance for the Nikkei is seen just above 9600which is where its 25-day moving average -- the often-quotedJapanese proxy for a trading
Strong resistance for the Nikkei is seen just above 9,600,which is where its 25-day moving average -- the often-quotedJapanese proxy for a trading month -- comes in. companies, reached adeal with bondholders for $3 billion in emergency financing.[ID:nN206604] The benchmark Nikkei .N225 rose 161.10 points to 9,556.42after rising as far as 9,588.77, while the broader Topix gained 2 percent to 895.58. Most of the Nikkei's gains came as it moved to play catch-upafter a holiday on Monday U.S. stocks jumped on Monday, with the S&P 500 hitting aneight-month closing high, after CIT Group Inc (CIT.N), a lenderto nearly a million small and mid-sized U.S.
"There certainly are hopes for change but more important thanthat is the Democratic Party actually showing that they'll beable to carry out change." Over the longer term, worries about how the Democrats wouldfund their proposed social programmes could weigh on the market,analysts said. Japanese Prime Minister Taro Aso dissolved parliament's lowerhouse on Tuesday for an election on Aug. 30 and vowed to restorevoters' faith in his fractious ruling party, which polls show isin danger of a historic defeat. [ID:nT98448] Market analysts and traders said political developments werenot a strong trading factor for the day, although the benchmarkNikkei rose a little from the level where it finished the morningsession after parliament was dissolved. "We have a bit of a gap before the election and there'll bepolitical uncertainty until August 30 so that isn't good for themarket," said Hiroaki Osakabe, a fund manager at Chibagin AssetManagement.
economy,reviving investor appetite for riskier assets and liftingblue-chip exporters such as Canon Inc (7751.T).Itochu Corp (8001.T) and other trading houses advanced onrising metals prices and firm oil, but trade was light asinvestors turned their attention to politics. Morgan Stanley added 12 people to its fixed income tradingteam since last July and expects to add more as volumes grow. ($1=48.2 rupees) (Additional Reporting by Tony Munroe; Editingby Ramya Venugopal) ((;+91-22-6636-9035; Reuters Messaging:)) ((If you have aquery or comment on this story, send an email )) Stocks Regulatory News Bonds Funds News ETFs News China. * Nikkei buoyed by U.S. stock gains, optimismon economy Stocks | China | Japan * Deal to rescue CIT group relieves financial system worry * Eyes on Japan election but stocks impact limited for now * Resistance strong near 25-day moving average around 9,600 TOKYO, July 21 (Reuters) - Japan's Nikkei average climbed 1.7percent as optimism grew about a recovery in the U.S. " We are going to be an active trader and a solutionprovider to our clients," Roy said. The Indian fixed income market now has 18 primary dealers-- seven standalone players including Morgan Stanley, and 11banks -- that trade government bonds and underwrite federalbond auctions as their main businesses.
India limits foreign investment in corporate debt at $16billion and in federal bonds at $5 billion and Roy said thelicense allowed it to trade interest rate derivatives, both onthe long and the short side and participate in the centralbank's daily money market auctions. Roy, who joined Morgan Stanley in 2008 from Merrill Lynch,said the borrowing plan will not crowd out private borrowers. He also said he was comfortable with caps on foreigninvestments in both government and credit markets, as theyhaven't yet been fully utilised and policymakers have opened upIndia's markets more than some Asian countries such as China. Three days after it got its license from the central bankto operate as a primary dealership in India, Ranodeb (Ronnie)Roy, head of the interest rates, credit and currency divisionfor Morgan Stanley in Asia, said India's huge governmentborrowing and growth prospects would be drivers for its bondmarket.
"The government bond market is one of the biggest anddeepest in Asia and we expect the government borrowing programwill continue to provide the market with significant businessopportunities," Roy told Reuters in a interview on a visit tothe firm's offices in central Mumbai. India unveiled an upwardly revised record borrowing plan of4.51 trillion rupees ($94 billion) for the 2009/10 fiscal year,three times more than last year's and a fiscal deficit of 6.8percent, its biggest in 16 years. Independent casualty estimates are unavailable.Violence across northwest Pakistan and the spread of Taliban influence have heightened concerns about insecurity in the nuclear-armed country, a key ally in the West's mission to stabilize Afghanistan and destroy al Qaeda.(Reporting by Junaid Khan; Writing by Augustine Anthony; Editing by Simon Cameron-Moore) World. (Corrects first name of banker to Ranodeb from Ronodeb insecond paragraph) Stocks | Regulatory News | Bonds | Funds News | ETFs News | China By Saikat Chatterjee and V. Ramakrishnan MUMBAI, July 20 (Reuters) - Morgan Stanley (MS.N) will rampup its presence in India's credit markets and hopes to benefitfrom the width and depth of the government debt market as itprepares to launch its primary dealing business, a seniorofficial said on Monday. WorldThe security forces conducted a search and cordon operation in several villages of Lower Dir on July 19 and 20 against militants who had fled a military offensive in the neighboring Swat valley, the military said in a statement issued late on Monday."During the operation, over 50 militants were killed and several wounded," according to a statement from the paramilitary Frontier Corps.The Pakistani military is in the last stages of an operation launched over two months ago in Swat.The military says it has killed more than 1,700 militants, but critics say few guerrilla leaders have been eliminated. KOTA, Pakistan (Reuters) - Pakistani troops have killed over 50 militants in two days of fighting in the Lower Dir district, the military said.