Nikkei seen weaker after German data, Caterpillar forecast

TOKYO, Sept 25 (Reuters) - Japan's Nikkei share average was
seen dropping on Tuesday as investors trim risk exposure on
renewed concerns about the global economy caused by weak German
business sentiment data and a cut in forecast earnings from
Caterpillar Inc.
Market players said the Nikkei was likely to trade between
8,950 to 9,050 after Nikkei futures in Chicago closed
at 8,985, down 0.1 percent from the close in Osaka.
"The German data is just the latest sign of a global
slowdown and is likely to drag on the market today," said
Toshiyuki Kanayama, senior market analyst at Monex.
German business sentiment dropped in September to its lowest
since early 2010, suggesting the euro zone's largest and
strongest economy is succumbing to a downturn despite the
European Central Bank's recent efforts to safeguard the single
currency.
A firmer yen, around 77.85 yen to the dollar, is also likely
to weigh on exporters as it threatens to erode their overseas
revenues once repatriated and makes them less competitive.
Construction-related companies may also be pressured after
U.S. construction machinery company Caterpillar cut its 2015
earnings forecast on the back of sliding commodity prices and
weakening global demand.
Japanese suppliers for Apple Inc could also be sold
off after supply constraints kept sales of the iPhone 5 below
some market forecasts and investors worried the Apple would not
be able to keep up with demand.
The Nikkei dropped 0.5 percent on Monday to hit a one-week
closing low of 9,069.29 points as a stronger yen weighed on
automakers and other exporters, although the benchmark managed
to hold above its 200-day moving average at 9,016.86.
> Wall St drops after Caterpillar forecast, German data
> Euro declines to more than one-week low vs dollar, yen
> Yields fall as Germany sparks growth concerns
> Gold falls on weak commodities, option expiry eyed
> Oil falls as weak German data weighs on outlook
STOCKS TO WATCH
- TOYOTA MOTOR CORP
Toyota is to slash production in China of its high-end Lexus
vehicle by about 20 percent as anti-Japan protests led sales to
slump 30 percent there amid protests that targeted its stores,
according to the Nikkei business daily.
-IHI CORP
IHI are to begin developing engines with General Electric
Co's Passport 20 business jet, providing around 30 percent of
the components such as low-pressure turbines, according to the
Nikkei business daily.
-ORIX CORP
Orix Corp has been chosen by South Korea's STX Group as a
preferred bidder to acquire an up to $357 million stake in its
unlisted affiliate STX energy, according to the group's holding
company STX Corp on Monday.