Japan stocks likely to rebound after Fed meeting

TOKYO, June 26 (Reuters) - Japanese stocks are likely to
rebound from a five-day losing streak on Thursday after Wall
Street gained on reduced expectations for a rate hike by the U.S.
Federal Reserve at its next meeting and a drop in oil prices.

"Technical charts show both U.S. and Japanese shares have
been oversold," said Hiroichi Nishi, general manager of equity
marketing at Nikko Cordial Securities. "The Tokyo market is
likely to bounce back today as an important event is over."

The Fed held interest rates steady on Wednesday and boosted
optimism among Wall Street stock investors when it said in its
accompanying statement that downside risks to growth appeared to
have diminished somewhat. [ID:nN25433059]

While the Fed is not expected to raise rates in the near
term, it voiced greater concern about inflation.

Nikko's Nishi said that would likely to limit the dollar's
slide against the yen JPY=, which in turn would support Japan's
exporters.

Nikkei futures finished at 13,980 in Chicago 2NKc1, 100
points above their Osaka close JNIc1.

Market participants said they expect the benchmark Nikkei
.N225 to move between 13,800 and 14,100 on Thursday.
----------------------MARKET SNAPSHOT @ 2252 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1321.97 0.58% 7.680
USD/JPY JPY= 107.75 -0.07% -0.080
10-YR US TSY YLD US10YT=RR 4.1014 -- 0.000
SPOT GOLD XAU= 885.45 0.02% 0.150
US CRUDE CLc1 134.43 -0.09% -0.130
DOW JONES .DJI 11811.83 0.04% 4.40
-------------------------------------------------------------
> Market up on Fed rate pause, oil; RIMM drops late [.N]
> Dollar down as Fed fails to give strong rate signal [USD/]
> Bonds flat as rate-hike fears abate after Fed [US/]
> Gold ends lower on oil losses as Fed holds rates [GOL/]
> Oil falls on US inventory build, weak demand [O/R]
STOCKS TO WATCH

-- Nomura Holdings Inc (8604.T)

The Financial Services Agency has finalised plans to issue an
order to Nomura Securities Co to improve its internal controls
following an insider trading scandal earlier this year, the
Nikkei business daily reported on Thursday.

-- Goodwill Group Inc (4723.T)

Goodwill said on Wednesday it would close a loss-making unit
that dispatches temporary workers, as the Japanese staffing firm
seeks to clean up its image and return to profit. [ID:nT269586]

-- Shinsei Bank (8303.T)

Shinsei said on Wednesday it would buy back up to 25 million
of its own shares for up to 20 billion yen in the year through
June 30, 2009.

-- Nissan Motor Co (7201.T)

Nissan Chief Executive Carlos Ghosn said industrywide sales
in the United States could fall well below 15 million vehicles
this year as high gas prices and a sluggish economy sap demand,
and warned of another push by steelmakers to hike prices.

Ghosn also said Japan's No. 3 automaker would likely lift car
prices in Japan, as it has already done in Europe, the United
States and most other markets, to offset a surge in the price of
raw materials such as steel. [ID:nT270323]

-- KDDI Corp (9433.T)

KDDI, Japan's second-biggest phone operator, said on
Wednesday it would offer free calls between land lines and mobile
phones 24 hours a day in an effort to revive its loss-making
fixed-line business. [ID:nT56007]

-- Mitsubishi Electric Corp (6503.T), Omron Corp (6645.OS)
and other factory automation equipment makers

U.S.-based factory automation systems maker Rockwell
Automation Inc (ROK.N) warned of a deteriorating profit outlook
on Wednesday, sending its shares tumbling more than 10 percent to
a three-year low. [ID:nN25422244]

-- Hino Motors (7205.T), Isuzu Motors (7202.T)

Mitsubishi Fuso Truck & Bus Corp and Hino Motors have decided
to raise the price of most of their truck models by 3 to 5
percent and Isuzu is considering hiking prices by a similar
amount, the Nikkei business daily reported on Thursday.

-- Aeon Mall Co (8905.T)

Aeon Mall's group net profit likely jumped 69 percent to
about 5.3 billion yen for the March-May period thanks largely to
a rise in revenue after a merger last August, the Nikkei business
daily reported on Thursday.

-- Sumitomo Mitsui Financial Group (8316.T)

British bank Barclays (BARC.L) on Wednesday raised 4.5
billion pounds from investors including Qatar and Sumitomo Mitsui
Financial Group (SMFG) and aims to use half the cash to rebuild
capital and half to pursue growth.

SMFG will get a 2 percent stake and a co-operation agreement
will give it access to Barclays Capital's investment bank
platform and its India and Pakistan footprint. [ID:nL25637237]
(Reporting by Taiga Uranaka; Editing by Chris Gallagher)