TOKYO, Sept 9 (Reuters) - Japanese stocks are likely to open
lower but move in a narrow range on Tuesday, with investor relief
over the U.S. government bailout of major mortgage finance firms
expected to provide solid floor for the market.
Economic uncertainty may also keep any gains in check.
Market participants expect the market to open lower after
Nikkei futures traded in Chicago closed at 12,525 on Monday, 125
points below their close in Osaka JNIc1.
"The market is likely to dip initially as a reaction to
yesterday's sharp rally. There are some pessimistic views about
the U.S. bailout," said Hiroichi Nishi, general manager of equity
marketing at Nikko Cordial Securities.
"But it is also expected to attract bargain hunters at the
low end of the day's range, as excessive anxiety has receded
(after the U.S. government's move)," he said.
The Nikkei made its biggest jump in five months on Monday,
as financial shares surged after the U.S. government seized
control of mortgage finance companies Fannie Mae (FNM.N) and
Freddie Mac (FRE.N).
Market participants expect the Nikkei .N225 to trade
between 12,500 and 12,700 on Tuesday.
----------------------MARKET SNAPSHOT @ 2254 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1267.79 2.05% 25.480
USD/JPY JPY= 108.13 -0.02% -0.020
10-YR US TSY YLD US10YT=RR 3.6948 -- 0.000
SPOT GOLD XAU= 802.65 0.16% 1.300
US CRUDE CLc1 106.71 0.35% 0.370
DOW JONES .DJI 11510.74 2.58% 289.78
-------------------------------------------------------------
> Wall Street soars on Fannie, Freddie bailout [.N]
> U.S. dollar rallies broadly on GSE takeover [USD/]
> Bonds rally on mortgage-related buying [US/]
> Gold slips with oil as dollar gains bailout [GOL/]
> Oil up slightly as Hurricane Ike threatens Gulf [O/R]
STOCKS TO WATCH
-- Nippon Steel Corp (5401.T) and other steel makers
Brazilian mining giant Vale (VALE5.SA) RIO.N, told major
Japanese steelmakers it plans another iron-ore price increase
this year of around 12 percent, due to tightening global
supplies, the Nikkei business daily reported on Tuesday.
[ID:nN08476941]
-- Hitachi Construction Machinery (6305.T), Pacific Metals
(5541.T)
The publisher of Japan's benchmark stock average said Hitachi
Construction Machinery and ferronickel producer Pacific Metals
will join the Nikkei 225 average .N225 in a reshuffle next
month. [ID:nT264856]
The Nikkei Inc said in a statement that it would remove
builder Kumagai Gumi (1861.T) and chemical maker Toagosei
(4045.T) in the reshuffle on Oct. 1 due to a decline in liquidity
in those stocks.
-- Fujitsu Ltd (6702.T)
Fujitsu's system chip division is expected to post an
operating loss of about 5 billion yen for the six months ending
Sept. 30 due to weak demand and after earthquakes disrupted
operations, the Nikkei business daily said on Tuesday.
-- Orix Corp (8591.T), Joint Corp 8874.T
Orix Corp said on Monday it would spend 10 billion yen to buy
shares of Joint, becoming the biggest shareholder in the
struggling real estate developer. [ID:nT260362]
The deal that will give Orix, the country's biggest general
leasing company, a 39 percent stake in Joint comes as the
developer struggles to find ways to improve its financial base.
-- Mitsubishi UFJ Financial Group (8306.T)
Japan's top lender said it would pay $1.4 billion to more
than double its stake in consumer loan affiliate Acom (8572.T) to
40 percent, as Japan's largest bank looks to strengthen its
position in the struggling consumer finance market. [ID:nT264190]
-- Tokyo Electric Power Co (TEPCO) (9501.T)
TEPCO, Japan's top utility, said on Monday it consumed less
oil and coal for electricity generation in August from the same
period a year ago, marking the first year-on-year decline this
year. [ID:nT316140]
(Reporting by Taiga Uranaka; Editing by Edwina Gibbs)
