TOKYO, Oct 21 (Reuters) - Japan's Nikkei stock average is
likely to edge down on Wednesday after anaemic U.S. data prompted
concerns about the pace of economic recovery and set off
profit-taking on Wall Street, with resource-linked shares weak
after commodity prices fell.
New construction of U.S. homes rose less than expected in
September, and U.S. producer prices posted an unexpected decline,
pointing to a weaker economic recovery. [ID:nN20424995]
The disappointing data prompted investors to take profits
despite solid results earlier in the week from bellwethers such
as Apple (AAPL.O) and Caterpillar Inc (CAT.N).
"The Nikkei has come to a relatively high level compared to
recent months, so it'll be easy for profit-taking to emerge here
as well, especially as Japan's earnings season begins in
earnest," said Yutaka Miura, senior technical analyst at Mizuho
Securities.
"This U.S. earnings season, profit-taking has taken share
prices lower even when companies report good results on a sense
that all the news is out now, and the same thing may well happen
here in Japan."
A government-appointed task force crafting a revival plan for
Japan Airlines (9205.T) cut its debt relief request to 250
billion yen ($2.8 billion) from 300 billion yen, but creditors
still rejected the plan, two sources said. [ID:nT221178]
Market players said that bank shares were likely to move in
tandem with JAL, which has rebounded this week after losing 26
percent last week, but that JAL shares were expected to be
volatile depending on the day and how demand played out.
The benchmark Nikkei .N225 is likely to move between 10,200
to 10,400, market players said. It closed at a three-week high of
10,336.84 on Tuesday.
Resource-linked shares such as Mitsubishi Corp (8058.T) and
other trading houses may weaken after commodity prices slipped,
but overall trading activity is likely to be lacklustre as the
market waits for Chinese data on Thursday.
In an indication of how the market may move, Nikkei futures
traded in Chicago 2NKc1 rose 0.1 percent from the Osaka close
of 10,330 JNIc1.
----------------------MARKET SNAPSHOT @ 2247 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1091.06 -0.62% -6.850
USD/JPY JPY= 90.7 0.01% 0.010
10-YR US TSY YLD US10YT=RR 3.3407 -- 0.000
SPOT GOLD XAU= 1054.55 0.05% 0.550
US CRUDE CLc1 78.79 -0.42% -0.330
DOW JONES .DJI 10041.48 -0.50% -50.71
-------------------------------------------------------------
> Wall St ends lower on profit taking; Yahoo up late [.N]
> Dollar rallies from 14-month low vs euro [USD/]
> Prices up on housing weakness, subdued inflation [US/]
> Gold slips below $1,060/oz as dollar rebounds [GOL/]
> Oil falls from 10-yr high over $80, US data weighs [O/R]
STOCKS TO WATCH
-- Elpida Memory Inc (6665.T)
Elpida's manufacturing partner Powerchip (5346.TWO) said it
requested T$4.5 billion ($140 million) from the Taiwan government
and another T$5.5 billion from the private sector to set up a
flash memory chip company. [ID:nLK41051]
Taiwan's Nanya Technology (2408.TW) and Inotera (3474.TW),
Nanya's joint venture with Elpida's main rival U.S.-based Micron
(MU.N), decided not to submit a DRAM restructuring plan to the
government to request state funds. [ID:nTPU001766]
-- Advantest Corp (6857.T), chip gear makers
Orders for Japanese equipment used to make semiconductors
narrowly outpaced sales for the sixth straight month in
September, underlining a recovery in a sector emerging from a
prolonged slump. [ID:nT193575]
-- Toyota Motor Corp (7203.T)
Toyota is ramping up its push on gasoline-electric hybrids,
launching a new model in Japan and taking on up-and-coming rival
Hyundai Motor Co (005380.KS) in its Korean home market with its
flagship Prius. [ID:nT203887]
Toyota, the world's largest automaker, said on Tuesday it
aims to sell 36,000 units a year of its new Sai hybrid sedan in
Japan, taking another step towards its goal of selling 1 million
hybrid vehicles annually worldwide soon after 2010.
(Reporting by Elaine Lies; Editing by Joseph Radford)
