Japan stocks may fall but resources to support

Mon Apr 14, 2008 7:31pm EDT

 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)







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