Japan stocks likely to fall on oil, U.S. economy

TOKYO, June 9 (Reuters) - Japanese stocks are likely to fall
on Monday on surging oil prices and renewed worries about the
U.S. economy after unemployment jumped the most in 22 years, with
Canon Inc (7751.T) and other exporters hit by a weaker dollar.

One stock to watch will be Takeda Pharmaceutical Co Ltd
(4502.T) after research presented on Saturday said Takeda's
experimental diabetes drug alogliptin significantly lowers blood
sugar alone and in combination with other common therapies.
[ID:nN05392926]

U.S. crude CLc1 jumped $11 on Friday, its biggest ever
one-day spike in dollar terms, while the U.S. May unemployment
rate rose to 5.5 percent, its highest level since October 2004.

"The Nikkei's likely to fall rather sharply, given the rise
in oil, Wall Street's tumble and the dollar. Chicago Nikkei
futures really took a dive, and futures will probably lead the
market, at least at first," said Hiroichi Nishi, general manager
at the equity division of Nikko Cordial Securities.

"Japan doesn't have quite the same concerns about inflation
as the rest of the world, but it can't fight alone against the
flow if other markets are falling, as is likely to happen today."

Trade is likely to start with generalised selling, with even
energy stocks hit at first due to the surprise of the rapid rise
in oil, though they are likely to recover later in the day on
short covering, he added.

The Nikkei .N225 is expected to move in a range from 14,000
to 14,300. It closed at 14,489.44 on Friday, a five-month closing
high.

Nikkei futures traded in Chicago 2NKc1 closed at 14,065 on
Friday compared with the Osaka close of 14,520 JNIc1.
----------------------MARKET SNAPSHOT @ 2245 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1360.68 -3.09% -43.370
USD/JPY JPY= 104.57 0.1% 0.100
10-YR US TSY YLD US10YT=RR 3.9284 -- 0.000
SPOT GOLD XAU= 902.8 0.16% 1.450
US CRUDE CLc1 137.93 -0.44% -0.610
DOW JONES .DJI 12209.81 -3.13% -394.64
-------------------------------------------------------------
> Dow falls 394.64 points on jobless rate, record oil [.N]
> Grim jobs data, ECB rate hike talk pummel dollar [USD/]
> Bonds rally as jobless rate jumps, stocks dive [US]
> Gold ends nearly 3 pct up on oil rally, weak jobs [GOL/]
> Oil falls over $1 at open after biggest ever surge [O/R]
STOCKS TO WATCH

-- Toyota Motor Corp (7203.T)

Toyota plans to start assembling hybrid cars in Australia as
early as in 2010, a source familiar with the matter said, in a
move aimed at achieving its global annual sales goal of 1 million
hybrid vehicles soon after 2010. [ID:nT270104]

-- TV Asahi Corp (9409.T)

Broadcaster TV Asahi said on Friday it had injected $226
million into its parent company, the Asahi Shimbun daily, buying
nearly 12 percent of the newspaper to shore it up in the face of
rising competition. [ID:nT264757]

-- Mitsubishi Corp (8058.T)

Trading house Mitsubishi plans to start raising the dividends
that it collects from nonlisted units and affiliates to a minimum
50 percent of their net profits, up from at least 30 percent
currently, to bolster its parent-only finances, the Nikkei
business daily reported on Saturday.

-- Promise Co Ltd (8574.T) and other consumer lenders

Citigroup (C.N) said on Friday it would shut down its
remaining Japanese consumer lending outlets and automated loan
machines, as the subprime-hit bank continues its retreat from
Japan's troubled moneylending industry. [ID:nT309094]

-- Mizuno Corp (8022.T)

Japan's Kosuke Kitajima, who is contracted to sportswear
company Mizuno, set a world record of two minutes and 7.51
seconds in the men's 200 metres breaststroke on Sunday wearing
one of Speedo's controversial LZR swimsuits. [ID:nSP16487]

Japanese officials have yet to announce whether they will
allow the country's swimmers to break contract and wear Speedo
suits in Beijing. World records have tumbled over the last few
months, almost all by swimmers wearing the LZR suits.

-- Mitsui & Co (8031.T)

Trading house Mitsui & Co and Challenger Financial Services
Group of Australia plan to jointly establish a fund to invest in
power stations and other infrastructure projects in emerging
countries, the Nikkei business daily reported on Sunday.

The fund will have assets of about 120 billion yen, of which
Mitsui and Challenger will initially provide 5 billion yen each,
the newspaper said.

-- Skymark Airlines Inc (9204.T)

Skymark will likely have to cut its net profit forecast for
this business year to March 2009 to about 300 million yen from
660 million yen due to flight cancellations caused by a pilot
shortage, the Nikkei business daily reported on Sunday.

The discount airline is expected to cancel nearly 300 flights
in July and another 200 in August as it will be unable to quickly
fill the void left by two pilots that left the company last
month, the newspaper said.

-- Nissin Food Products Co (2897.T)

Nissin Food will buy frozen-food producer Nicky Foods Co for
about 1.8 billion yen, a move expected to boost Nissin's ranking
in the Japanese frozen-food industry from 13th to seventh, the
Nikkei business daily reported on Saturday.

Nicky has been suffering losses since pesticide was found in
frozen foods made by its Chinese unit, the Nikkei said.

-- Sumitomo Heavy Industries Ltd (6302.T)

Axcelis Technologies Inc (ACLS.O) said on Friday it would
begin discussions with Sumitomo Heavy and TPG Capital LP
[TPG.UL], which made a $616 million unsolicited takeover bid for
the semiconductor-equipment maker. [ID:nN06369516]
(Reporting by Elaine Lies; Editing by Chris Gallagher)