Japan's Nikkei likely to fall on Cyprus concerns
TOKYO, March 26 (Reuters) - Japan's Nikkei average is expected to open lower on Tuesday on concerns over the stability of the euro zone's banking system after a senior official said the Cyprus rescue could be a new template to deal with other regional banking problems. The Cyprus deal is forcing depositors and bank bondholders to bear losses, and Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, said the Cyprus bailout represented a new template for resolving banking problems in the currency bloc. "There is a concern that similar bailout plan or similar structure for deposit losses will be used on other countries that need a bailout," said Takashi Hiroki, chief strategist at Monex Inc. "The Nikkei rose sharply yesterday, so profit-taking will be dominant in today's market." The Nikkei is likely to trade between 12,400 and 12,500, strategists said, after gaining 1.7 percent to 12,546.46 on Monday. The broader Topix index added 0.8 percent to 1,047.29. Nikkei futures in Chicago closed at 12,390 on Monday, down 1 percent from the Osaka close of 12,510. The benchmark Nikkei has rallied nearly 45 percent since mid-November, when Prime Minister Shinzo Abe unveiled proposals during his election bid for expansionary fiscal and monetary policies to revive the economy. > Wall St ends lower on renewed Cyprus worries > Euro at 4-month low vs US dollar on Cyprus deal anxiety > Treasuries gain as Cyprus comments spark worry over banks > Gold down as Cyprus deal reduces safe-haven appeal > Oil rises in choppy trade after Cyprus bailout deal STOCKS TO WATCH --GS YUASA CORP, ALL NIPPON AIRWAYS, JAPAN AIRLINES A Boeing Co 787 Dreamliner took to the sky on Monday in the first of two flights aimed at showing that the plane's new lithium-ion battery system meets regulator safety standards, a key step towards ending a two-month, worldwide grounding of the high-tech jet. GS Yuasa is the battery maker for the Dreamliner. --TOSHIBA CORP Westinghouse, a unit of Toshiba, has taken the lead over a Russian-led consortium in a tender to expand the Temelin nuclear power plant, the biggest-ever Czech industrial project, company officials said on Monday. --GUNGHO ONLINE ENTERTAINMENT INC, SOFTBANK CORP Softbank Corp's mobile unit said on Monday that it would launch a tender offer to increase its stake in Gungho Online Entertainment Inc, making the game developer a wholly owned subsidiary. Softbank Mobile Corp, a subsidiary of the Japanese mobile operator, is already the top shareholder in Gungho Online Entertainment with a 33 percent stake. --CHUGAI PHARMACEUTICAL CO LTD Chugai, a subsidiary of Roche Holding AG, said on Monday that Japanese health regulators had approved a new formulation of its rheumatoid arthritis drug Actemra.
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