Nikkei to dip but losses limited ahead of year end

By Rika Otsuka

TOKYO, March 31 (Reuters) - Japan's Nikkei is expected to
ease on Tuesday on fears of bankruptcy for U.S. automakers and
worries about the global financial industry, prompting investors
to sell banks such as Mizuho Financial Group (8411.T).
U.S. stocks tumbled on Monday as General Motors Corp (GM.N)
and Chrysler LLC took a step closer to potential bankruptcy, and
a spate of European bank rescues heightened concerns over the
financial system's health, putting the brakes on a recent run-up.
[.N]

The U.S. autos woes and a higher yen are likely to keep
automakers such as Toyota Motor Corp (7203.T) and other big
exporters such as electronics parts maker Kyocera Corp (6971.T)
under pressure.

"Views that the market has been overheated, problems of GM
and Chrysler and a rise in the yen are all hurting the stock
market," said Hiroichi Nishi, general manager of equity marketing
at Nikko Cordial Securities.

"But a further slide in shares will be limited as the Tokyo
market has already fell sharply on these factors the previous
day."

After initial selling, the stock market is likely to
stabilise, particularly if public funds come in to do last-minute
buying before Japan's main financial year ends on Tuesday.

Nikkei futures traded in Chicago 2NKc1 closed at 8,195 on
Monday, 5 points below the Osaka close <0#JNI:>, pointing to a
flat opening.

Market players expect the benchmark Nikkei .N225 to move
between 8,100 and 8,400 on Tuesday. It dropped 4.5 percent on
Monday to 8,236.08.
----------------------MARKET SNAPSHOT @ 2312 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 787.53 -3.48% -28.410
USD/JPY JPY= 97.35 0.08% 0.080
10-YR US TSY YLD US10YT=RR 2.7226 -- 0.009
SPOT GOLD XAU= 914.75 -0.17% -1.550
US CRUDE CLc1 48.72 0.64% 0.310
DOW JONES .DJI 7522.02 -3.27% -254.16
-------------------------------------------------------------
> Wall St hits the brakes on autos, bank woes [.N]
> Auto, bank worries lift safe-haven dollar, yen [USD/]
> Treasuries benefit from renewed slump in stocks [US/]
> Gold turns lower as dollar rise, deleveraging weigh [GOL/]
> Oil falls over 7 pct on dollar, stock market [O/R]
STOCKS TO WATCH

-- Fujitsu (6702.T)

Fujitsu Ltd said it aimed to double PC server sales in two
years to lift its global share to 7 percent from the current 4
percent, as it battled bigger rivals like Hewlett-Packard (HPQ.N)
and Dell Inc (DELL.O). [ID:nT76187]

Fujitsu also reaffirmed the company's commitment to its
high-end computer server franchise, even though its partner in
that business faces an uncertain future. [ID:nN29285925]

-- Softbank Corp (9984.T)

A unit of mobile phone firm Softbank Corp has sold over
490,000 Yahoo Japan Corp (4689.T) shares this month to buyers
outside the Softbank group, the financial daily Nikkei reported.
[ID:nN30342687]

-- Mizuho Financial Group (8411.T)

Mizuho Financial Group (8411.T) said it would not redeem $1.5
billion of perpetual subordinated bonds issued to retail
investors when they first become callable next month given
current market conditions. [ID:nT127312]

-- Kansai Urban Banking Corp (8545.OS), Sojitz Corp (2768.T)

French nuclear energy group Areva CEPFi.PA said Kansai
Urban Banking Corp and trading house Sojitz Corp would acquire a
joint 2.5 percent stake in the French state-owned company's
Georges Besse II enrichment plant for an undisclosed amount.
[ID:nLU37365]

-- Nisshinbo Industries Inc (3105.T)

Cotton-spinning firm Nisshinbo plans to start mass producing
next year a carbon-based catalyst that could push down the price
of fuel cell vehicles by about 10 percent, the Nikkei newspaper
reported on Tuesday.