Nikkei set to edge higher, Greek debt talks eyed

TOKYO, Jan 24 (Reuters) - Japan's Nikkei share average
looks set for a rise on Tuesday fuelled by optimism that a
solution could still be found to the Greek debt crisis even
after European finance ministers rejected an offer by Greece's
private creditors.
Euro zone officials told Reuters that finance ministers sent
back for further negotiations a debt restructuring offer from
private Greek bondholders to achieve a lower average coupon, or
interest rate, on new Greek bonds.
Ahead of the meeting, the single currency rose to a
three-week high against the dollar as market worries about
Greece were somewhat allayed by a public push by Germany and
France for a rapid debt deal and comments that they were
dedicated to a new bailout to stave off a chaotic default.
The benchmark Nikkei is likely to trade between
8,750 and 8,850 on Tuesday, strategists said, after Nikkei
futures in Chicago closed at 8,795, up 25 points or
0.29 percent from the Osaka close of 8,770.
In Japan, market participants were encouraged by recently
robust trading volumes.
"There is a sense that cash is flowing back to equities on
the back of a run of positive economic data out of the United
States, as well as the country's earnings announcements that
have been mostly in line with expectations," said Hiroichi
Nishi, equity general manager at SMBC Nikko Securities.
"Since Japan's market has been in a rally for a few
sessions, the focus today will be whether the benchmark can test
the upside and climb even higher," he said.
On Monday, the benchmark Nikkei ended flat at
8,765.90 after rising 3.1 percent last week, while the broader
Topix gained 0.2 percent to 756.79.
The benchmark has gained 3.7 percent so far this month and
if current gains continue it will be its best January
performance since 1999.
Wall Street ended flat on Monday after a recent rally, as
investors await key earnings from 117 S&P 500 companies this
week including technology bellwether Apple.

> Wall St pauses after rally; bellwether earnings eyed
> Euro hits highest in nearly 3-wks but pessimism persists
> Prices dip as hopes rise for relief in Europe
> Gold rises 1 pct on technical buying, euro gains
> Oil up on EU deal to ban Iran crude, weaker dollar
STOCKS TO WATCH
-- SONY, FUJIFILM
The Nikkei said on Tuesday that Sony has proposed a capital
and business tie-up with Olympus, offering to take a 20 to 30
percent stake in the troubled company.
-- Elpida Memory
Elpida is in the final stage of talks to merge with U.S.
firm Micron Technology and Taiwan's Nanya Technology
, the Yomiuri newspaper reported on Tuesday.
Elpida, Japan's last remaining player in the dynamic
random-access memory (DRAM) market, is battling tumbling prices
and loss of market share to South Korea's better-funded giants
and has been seeking ways to survive.
-- TEPCO
Japan's government has decided to double its repayment
guarantees on private-sector banks' loans to the state-backed
nuclear accident compensation fund to up to 4 trillion yen ($52
billion) next fiscal year, the Nikkei business daily reported on
Monday.
Meanwhile, the newspaper also said four major Japanese life
insurers including major shareholders Nippon Life Insurance Co
and Dai-ichi Life Insurance Co are planning
to provide a 100 billion yen syndicated loan to Tokyo Electric
Power Co as early as April.
-- MARUBENI
The president of Japanese trading house Marubeni, Teruo
Asada, told the Nikkei business daily on Monday that the company
could hit its target of 200 billion yen in net profit for the
year ending in March 2013 despite weakening resource prices as
it cashes in overseas investments.