Tokyo Stocks Up along with US Gains

Tokyo stocks rose Friday morning as sentiment brightened on eased fears over the European debt crisis and an overnight rise on Wall Street. The Nikkei 225 index at the Tokyo Stock Exchange added 1.05 percent or 88.24 points to end the morning session at 8,473.83. The Topix of all first section shares rose 0.72 percent or 5.21 points to 732.36. Smooth bond auctions overnight for Italy and Spain lifted spirits, as did rises in other Asian markets.

US stocks shrugged off disappointing retail sales and jobs data Thursday to add gains after a mixed day in crisis-mired Europe. The Dow Jones Industrial Average closed up 0.17 percent to 12,471.02.

Our preference: Bearish below 2785 with 2640 and 2575 as targets.

Alternative scenario: above 2785, eye 2905 and 3000 in extension.

Comment: the index is expected to challenge its nearest resistance at 2785 in the coming days.

Trend: ST Ltd Upside; MT Range, we have been neutral since 13 JAN 2012 (2763).

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