Tokyo stocks seen range-bound, eyes on Nikko Cordial

TOKYO (Reuters) - Japan's Nikkei stock average is expected to move in a narrow range on Wednesday, with profit-taking likely to prevent the index from going further beyond 17,000.

Among the news likely to move the market is Citigroup's (C.N: Quote, Profile, Research, Stock Buzz) buyout of Nikko Cordial Corp 8603.T.

Citigroup said on Tuesday it would buy out minority shareholders in Nikko Cordial for $4.6 billion, as part of the financial giant's push into the world's second-largest economy.

Also in the news were Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz) and JFE Holdings Inc (5411.T: Quote, Profile, Research, Stock Buzz). The Nikkei business daily reported on Wednesday that the electronics group and the steelmaker have agreed to alliance in small and midsize steam turbines for power plants.

"The Nikkei is likely to be traded around 17,000. It recovered to that level yesterday, but profit-taking is waiting there," said Masayoshi Yano, senior manager of investment information at Tokai Tokyo Securities.

"Whether the index can go beyond this level depends on foreign investors."

Market participants said the benchmark Nikkei average .N225 will likely move between 16,900 and 17,150 on Wednesday.

Nikkei futures traded in Chicago finished Tuesday at 17,090, unchanged from the Osaka JNIc1 close.

The Nikkei finished Tuesday up 1.2 percent at 17,046.78, the index's first close above 17,000 since Aug 9.