Nikkei seen range-bound as yen may hurt exporters

TOKYO, April 27 (Reuters) - Japan's Nikkei average is
expected to soften on Monday, with exporters seen under pressure
on a stronger yen, while worries about a global swine flu
epidemic may prompt investors to hold back from active trade.
U.S. stocks gained on Friday but stocks futures fell
more than 1 percent by early Monday morning, and analysts said
that could weigh on Japanese stocks.
Fears of a global swine flu pandemic grew with new infections
in the United States and Canada on Sunday, and millions of
Mexicans stayed indoors to avoid a virus that has already killed
around 81 people. [nN26482522]
Among notable stocks, Shinsei Bank <8303.T> and Aozora Bank
<8304.T> will likely be in focus after people familiar with the
matter said on Saturday the two banks are in talks to merge, a
deal that would bring together two unprofitable lenders and
create Japan's sixth-largest bank. [nBNG449002]
"Investors will be cautious over uncertainty about the impact
of swine flu, combined with lower U.S. stocks futures and a
stronger yen," said Yutaka Miura, a senior technical analyst at
Shinko Securities.
"Despite a higher finish in New York, it's hard to buy and
investors may move to take profits."
Nikkei futures traded in Chicago <2NKc1> closed at 8,960 on
Friday, 220 points above the Osaka close <0#JNI:>.
Market participants expect the benchmark Nikkei <.N225> to
move between 8,600 and 8,900 on Monday. It fell 1.6 percent on
Friday to end at 8,707.99 and shed 2.2 percent on the week.
Major Japanese companies set to report results later in the
day include Advantest <6857.T>, Kyocera Corp <6971.T>, Sharp Corp
<6753.T>, Komatsu Ltd <6301.T>, Nippon Yusen KK <9101.T>,
Mitsubishi Motors Corp <7211.T> and Daihatsu Motor Co <7262.T>.

----------------------MARKET SNAPSHOT @ 2315 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 866.23 1.68% 14.310
USD/JPY 96.79 -0.03% -0.030
10-YR US TSY YLD 2.9585 -- -0.032
SPOT GOLD 915.5 0.48% 4.400
US CRUDE 50.84 -1.38% -0.710
DOW JONES <.DJI> 8076.29 1.50% 119.23
-------------------------------------------------------------

> Earnings, banks lift Wall St; Nasdaq up for 7th week [.N]
> Euro rises vs dollar for fourth straight session [USD/]
> Supply fears hurt bonds, 10Y yield tests 3 pct [US/]
> China buying boosts gold to 3-week high [GOL/]
> Oil tops $51 on stronger equities, weaker dollar [O/R]

STOCKS TO WATCH
-- Kirin Holdings <2503.T>
Japanese brewer Kirin clinched a A$3.5 billion ($2.5 billion)
agreed takeover of Lion Nathan Ltd , Australia's
second-largest brewer, on Monday, paying a near 50 percent
premium for the remaining 53.9 percent it does not already own.
[nSYD119790]
-- Nomura Holdings <8604.T>
Nomura, Japan's biggest brokerage, posted a fifth straight
quarterly net loss on Friday, hit by costs related to its
acquisition of parts of failed investment bank Lehman Brothers
and investments turned sour amid the financial crisis.
[nT1801]
-- Ricoh Co Ltd <7752.T>
Ricoh, a top-ranked producer of copiers and fax machines,
said on Friday its group pretax profit plunged 82.3 percent in
the year ended in March compared with the year before, though it
forecast a return to the black in the current financial year.
-- Hakuhodo DY Holdings <2433.T>
Hakuhodo, Japan's second-largest advertising agency, slashed
its net profit forecast for the year ended in March to a loss of
3.2 billion yen from its previous forecast of a profit of 2.3
billion yen.
-- Pioneer Corp <6773.T>
Japanese electronics maker Pioneer, which sources say could
seek government help and may get a bailout from Honda Motor Co
<7267.T>, said on Friday its president will hold a briefing on
April 28 to announce a medium-term business plan. [ID:T370900]
-- Kao Corp <4452.T>
Kao, Japan's largest household products maker, forecast on
Friday it will post a 0.2 percent rise in group operating profit
at 97 billion yen for the year ending in March 2010, compared
with the 104.2 billion yen profit projected by eight brokerages
polled by Reuters.
(Reporting by Aiko Hayashi; Editing by Michael Watson)
((aiko.hayashi@thomsonreuters.com; Reuters Messaging:
aiko.hayashi.reuters.com@reuters.net; +81 3 6441 1802))
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Keywords: MARKETS JAPAN STOCKS

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