Nikkei seen falling as Spain worries grow

TOKYO, July 24 (Reuters) - Japan's Nikkei share average is
likely to fall on Tuesday after worries that Spain may not be
able to avoid a bailout pummelled risk assets on global markets.
Investors are also concerned that Japan's earning season,
which starts in earnest later this week, is unlikely to give the
market a fillip as companies brace for a slowdown in the global
economy.
"The market is getting cautious about the upcoming
earnings," said Toshiyuki Kanayama, market analyst at Monex
Securities.
Market players said the Nikkei was likely to trade between
8,400 and 8,500 on Tuesday. Nikkei futures in Chicago
closed at 8,465, down from the close in Osaka of 8,510.
On Monday the Nikkei shed 1.9 percent to 8,508.32,
its lowest close sine June 8. The broader Topix index
slipped 1.8 percent to 720.62, having fallen in 11 of the past
12 sessions.
World equity markets sold off and the euro set new two-year
lows against the U.S. dollar on Monday after reports that more
indebted regions in Spain need financial aid fueled fears that
the country may need a bailout.
Technically, the Nikkei looks bearish on the daily Ichimoku
chart after it fell through an important support from the bottom
of the cloud on Monday. Below 8,500, there are no major support
levels before the six-month closing low of 8,296 on June 4,
market players said.
As losses mount, retail Japanese investors with long
positions in margin trading may also be forced to liquidate
positions to access collateral, adding to the downward pressure,
an analyst at a Japanese brokerage warned.

>Pain in Spain hits Wall St, Texas Instruments off late
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>Europe fears push US debt yields to new lows 
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>Oil falls, pressured by Spain, euro zone worries
STOCKS TO WATCH
-- Sharp
Sharp is expected to report a group net loss of about 100
billion yen ($1.28 billion) for the April-June quarter as its
LCD panel and solar panel businesses continue to decline, the
Nikkei business daily said on Tuesday.
Sharp is also considering its first large-scale job cuts and
will offer early retirement packages to several thousands of
employees across the world, the Nikkei said.

-- Toshiba
Toshiba Corp plans to cut production of NAND flash memory by
30 percent, its first cutback since 2009, the Nikkei reported.