TOKYO, Oct 27 (Reuters) - The Nikkei average is expected to
slip on Tuesday after U.S. stocks fell amid fears lawmakers may
let a federal home buyer tax credit expire, but falls may be
limited, with a weaker yen supporting shares of exporters.
Hitachi Ltd (6501.T) may draw attention after the electronics
conglomerate reduced its annual net loss forecast by 15 percent,
bringing it nearer market expectations, with the firm citing a
recovery in emerging markets, government spending and cost cuts.
[ID:nT297614]
"The market will likely dip after U.S. stocks extended their
decline and then be mixed," said Hiroichi Nishi, general manager
of equity marketing at Nikko Cordial Securities.
"The market is still a bit overheated and lacks strength, but
the weaker yen will likely help cap big falls."
Nikkei futures traded in Chicago 2NKc1 finished at
10,260.00 on Monday, down 1 percent from the Osaka close JNIc1,
pointing to a lower start.
The benchmark Nikkei .N225 is likely to move between 10,250
and 10,450 on Tuesday, market players said. It climbed 0.8
percent the previous day to 10,362.62, its highest finish in four
weeks.
The dollar was around 92.20 yen JPY=. Many Japanese
exporters have set their currency rate assumptions at 90-95 yen
for the year to March.
The S&P 500 Index .SPX shed 1.2 percent on Monday. Without
the home buyer credit, investors worry that the struggling
housing market might lose a crucial incentive that has spurred
hopes of stabilisation in recent months. [.N]
Japan's corporate earnings season heats up this week, with
companies reporting later in the day including Nippon Yusen KK
(9101.T), Honda Motor Co (7267.T) and Canon Inc (7751.T).
----------------------MARKET SNAPSHOT @ 2300 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1066.95 -1.17% -12.650
USD/JPY JPY= 92.21 -0% 0.000
10-YR US TSY YLD US10YT=RR 3.558 -- 0.000
SPOT GOLD XAU= 1036.9 -0.02% -0.200
US CRUDE CLc1 78.56 -0.15% -0.120
DOW JONES .DJI 9867.96 -1.05% -104.22
-------------------------------------------------------------
> Wall St sinks on home builder fears, financials [.N]
> US dollar rallies as Wall Street, commodities drop [USD/]
> Bonds retreat into record dose of issuance [US/]
> Gold hits 2-week low, under $1,040 as dollar jumps [GOL/]
> Oil falls below $79 with equities as dollar firms [O/R]
STOCKS TO WATCH
-- Nintendo Co (7974.OS)
Nintendo plans to launch a new version of its DSi hand-held
videogame player with a larger screen in Japan as early this
year, the Nikkei business daily reported on Tuesday.
[ID:nT313758]
-- Kirin Holdings (2503.T)
Kirin said it would end production at two beer factories in
Japan next year, as it prepares for a planned merger with
unlisted Suntory Holdings to create one of the world's largest
food and beverage firms. [ID:nTKB006517]
-- Nippon Yusen (9101.T)
Nippon Yusen plans to halve its container ship fleet by the
year ending March 2014 to cut costs, and will scrap, sell or
return 60 leased vessels of the 120 container vessels it
operates, the Nikkei business daily said.
(Reporting by Aiko Hayashi; Editing by Michael Watson)
