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Nikkei gains on Europe deal; stops short of 75-day avg

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The Nikkei average gained on Monday after European leaders agreed to draft a new treaty for deeper economic integration, but market players said the short-covering bounce may not last as the deal was no panacea for the region's long-term debt worries. The Nikkei closed just below its 75-day moving average and trading volume was thin, in a sign investors were still not confident that the worst for the debt crisis is over in Europe. "Europe is about one month behind the schedule they announced in October, in terms of putting the bailout fund to work and reinforcing banks capital. The European crisis will continue to be a burden on the market," said Mamoru Suzuki, chief economist at Mizuho Research & Consulting. (Reuters)

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