Japan stocks may fall but resources to support
TOKYO, April 15 (Reuters) - Japanese stocks may fall more on Tuesday from the two-week closing low hit the previous day as worries about financials continue, but resource-related shares such as trading house Mitsui Co Ltd (8031.T) are likely to support the market after oil closed at a record.
Investors may also focus on Nippon Steel Corp (5401.T) and JFE Holdings Inc (5411.T) after the Nikkei business daily said high raw materials and energy prices will likely lead to double-digit declines in group pretax profit at the steelmakers. [nT224729]
"Resource-related shares such as trading houses may come in favour, helped by high oil prices, but trade as a whole will likely be slow," said Kazuhiro Takahashi, a general manager of the equity marketing department at Daiwa Securities SMBC.
"Worries about the financial sector persist after such news as Wachovia."
Wachovia Corp WB.N, the No. 4 U.S. bank, said on Monday it would cut its dividend, eliminate jobs and raise capital of $7 billion after becoming the latest casualty of the global credit crunch. [ID:nN14343221]
The benchmark Nikkei average .N225 fell 3.1 percent to 12,917.51 on Monday to book its lowest close since April 1.
The price of oil CLc1 rose to a record settlement on Monday just short of $112 a barrel.
Nikkei futures traded in Chicago 2NKc1 closed at 12,965, five points below the close in Osaka JNIc1. ----------------------MARKET SNAPSHOT @ 2303 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1328.32 -0.34% -4.510 USD/JPY JPY= 101.17 0.12% 0.120 10-YR US TSY YLD US10YT=RR 3.5128 -- 0.000 SPOT GOLD XAU= 923.9 -0.02% -0.200 US CRUDE CLc1 111.9 0.13% 0.120 DOW JONES .DJI 12302.06 -0.19% -23.36 ------------------------------------------------------------- > Wachovia hits banks, cancels oil gains; stocks slip [.N] > Dollar flat as bleak US outlook offsets G7 impact [USD/] > Bonds give up ground before inflation reports [US/] > Gold bounces back on oil gains, outlook bright [GOL/] > Oil rises on weaker dollar, supply disruptions [O/R] STOCKS TO WATCH
-- J.Front Retailing Co Ltd (3086.T)
J. Front Retailing said on Monday it expects to book 43 billion yen in operating profit for the year ending in February 2009, up from 39.7 billion yen this year.
The department store operator also said it was likely to pay 9 yen in full-year dividend per share, compared with this year's 4.5 yen.
-- Matsushita Electric Industrial Co (6752.T)
Panasonic maker Matsushita Electric said on Monday it would launch fuel-cell systems for domestic use in Japan in the year starting April 2009, taking aim at demand for cleaner energy sources. [ID:nT342263] (Reporting by Aiko Hayashi; Editing by Hugh Lawson)