Nikkei seen dipping after falls in US bank shares

TOKYO, June 18 (Reuters) - Japan's Nikkei stock average is
likely to slip on Thursday after the U.S. Dow and the S&P 500
dipped due to falls in financial shares, even as technology
shares buoyed the Nasdaq.

REIT shares and Mitsubishi Estate (8802.T) may be in focus
after Japan's second-biggest developer told Reuters it is
interested in buying a real estate investment trust (REIT) in
Japan and is preparing to launch a property investment fund in
the United States. [ID:nT24841]

The comments follow Daiwa Securities Group's (8601.T)
announcement that it would buy a stake in a real estate
investment trust and purchase the trust's asset manager.

The Dow and S&P 500 both fell about 0.1 percent on Wednesday
as U.S. bank shares took a hit from a broad debt ratings
downgrade from Standard & Poor's and uncertainty over the
government's extensive proposals for banking-industry reform.

The Nikkei is likely to start slightly lower, but losses will
likely be limited after that, said Hiroichi Nishi, general
manager in the equity division of Nikko Cordial Securities.

"Buying tends to emerge on dips, but there are also not many
reasons to actively chase prices higher, so we are likely to see
some range-trading," Nishi said.

The benchmark Nikkei average has slid 2.9 percent on the week
after hitting an eight-month closing high of 10,135.82 last
Friday.

Despite the decline, market analysts say there is little
change in the overall rebound trend, which has lifted the Nikkei
40 percent from its early March trough of 7,021.28.

Nishi said the Nikkei was likely to move between 9,700 to
9,900 on Thursday.

Market analysts say the Nikkei is likely to find support from
the 25-day moving average that now lies just under 9,600.

The Nikkei rose 0.9 percent to 9,840.85 on Wednesday.

Nikkei futures traded in Chicago 2NKc1 finished at 9,800 on
Wednesday, down slightly from the Osaka close of 9,830 JNIc1.
----------------------MARKET SNAPSHOT @ 2312 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 910.71 -0.14% -1.260
USD/JPY JPY= 95.84 0.19% 0.180
10-YR US TSY YLD US10YT=RR 3.6862 -- 0.000
SPOT GOLD XAU= 941.05 0.28% 2.650
US CRUDE CLc1 71 -0.04% -0.030
DOW JONES .DJI 8497.18 -0.09% -7.49
-------------------------------------------------------------
> Nasdaq advances with tech, but banks curb Dow, S&P [.N]
> Dollar drops as tame inflation dents rate hike view [USD/]
> Treasuries prices back off on stock market gains [US/]
> Gold turns higher on dlr drop, investment buying [GOL/]
> Oil rises on stock market, US inventory data [O/R]
STOCKS TO WATCH

-- Toyota Tsusho Corp (8015.T)

Toyota Tsusho Corp, Japan's sixth-biggest trading company and
an affiliate of Toyota Motor Corp (7203.T) plans to increase its
Toyota dealerships in China to cope with strong demand, Junzo
Shimizu, president and CEO, told Reuters in an interview on
Wednesday. [ID:nT50751]

-- Astellas Pharma Inc (4503.T)

Astellas, Japan's second-largest drugmaker, said on Wednesday
it had received regulatory approval for four additional
indications for the arthritis treatment Celecox in Japan.

The drugmaker said sales from the applications are factored
into its earnings forecast for the year to March 2010.

-- Toyota Motor Corp (7203.T)

Toyota is preparing to ramp up production of the hot-selling
Prius hybrid by adding weekend shifts, but denied a report that
it was considering building the model at a plant in California
held jointly with General Motors Corp GMGMQ.PK. [ID:nT9185]

-- Bridgestone Corp (5108.T)

Bridgestone, the world's top tyre maker, said on Wednesday
its new factory in Japan has started production three months
ahead of schedule as it sees solid demand for tyres used for
mining and construction vehicles. [ID:nT55140]

-- Laox Co (8202.T)

-- The struggling consumer electronics retailer is holding
discussions with Chinese retail chain operator Suning Appliance
Co on an equity deal that will make it the first big Japanese
retailer to become a Chinese company's affiliate, the Nikkei
business daily said. [ID:nBNG365996]

-- Kinki Nippon Tourist Co Ltd (9726.T)

The travel agency cut its earnings forecast for the six
months ending this month, hit by a decline in travel following
the flu outbreak. It now expects to post a 4.8 billion yen
operating loss for the first half, more than its previous
estimate of a 3.7 billion yen loss.
(Reporting by Masayuki Kitano; Editing by Edwina Gibbs)