(Corrects day of Nikkei article on Asahi Breweries in "stocks to
watch" to Saturday, not Monday)
TOKYO, June 30 (Reuters) - Japan's Nikkei stock average is
likely to slide on Monday on increased uncertainty about the
global economy after oil climbed to nearly $143 a barrel, with
Mizuho Financial Group (8411.T) and other financials weak after
their Wall Street peers fell.
One stock to watch will be NEC Corp (6701.T), which said on
Friday it would acquire U.S. software company NetCracker
Technology Corp for about $300 million to expand its overseas IT
systems and network operations, a move to offset a slow-growing
home market. [ID:nT304606]
"It's inevitable that Tokyo stocks will be unable to escape
the impact of the high oil prices and slide in Wall Street
shares, especially financials," said Yutaka Miura, senior
technical analyst at Shinko Securities.
"But Tokyo's fallen for seven straight days now and so it's
about time for a rebound -- not a full recovery, but a rebound.
Still, with the BOJ tankan due out tomorrow, not so many people
may buy," he said.
Financial shares in the U.S. fell on worries about more
credit losses after Lehman Brothers forecast Merrill Lynch
MER.N would write down another $5.4 billion in the second
quarter, while Moody's Investors Service said it may cut Morgan
Stanley's (MS.N) credit rating.
Other market players said that window-dressing ahead of the
end of the month and the end of the first quarter for many
Japanese firms will help keep the Nikkei supported.
The benchmark Nikkei .N225 is likely to move between 13,400
and 13,650, with selling emerging at the start and the market
then consolidating at low levels. It closed at 13,544.36 on
Friday.
Nikkei futures traded in Chicago 2NKc1 finished at 13,560
on Friday compared with the Osaka futures close of 13,530.
----------------------MARKET SNAPSHOT @ 2252 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1278.38 -0.37% -4.770
USD/JPY JPY= 106.31 0.14% 0.150
10-YR US TSY YLD US10YT=RR 3.969 -- 0.000
SPOT GOLD XAU= 928.4 0.13% 1.250
US CRUDE CLc1 141.1 0.63% 0.890
DOW JONES .DJI 11346.51 -0.93% -106.91
-------------------------------------------------------------
> Market ends lower, Dow on cusp of bear market [.N]
> Yen, Swiss franc gain as risk appetite fades [USD/]
> Bonds shine as safe haven from mauled stocks [US/]
> Gold hits 1-month high on record oil, weak stocks [GOL/]
> Oil hits record near $143 on rising investor flows [O/R]
STOCKS TO WATCH
-- Takashimaya Co Ltd (8233.T)
The department store operator said on Friday it cut its
full-year revenue forecast 1.7 percent to 1.05 trillion yen, hit
by weak sales, but said it would be able to maintain its profit
outlook by cutting costs.
For the three months ended in May, its operating profit fell
7.9 percent to 7.6 billion yen, hurt by sluggish sales of women's
clothing and luxury items.
-- Okamoto Industries Inc (5122.T)
The condom maker said on Friday it would buy back up to 800
million yen worth of its own shares, or about 1.7 percent of
those outstanding, between July 1 and Dec. 26.
-- Orix Corp (8591.T)
Orix plans to invest 300 billion yen in office buildings,
condominiums and hotels in key Japanese cities in 2008, a
Japanese daily said on Sunday. [ID:nT265946]
-- Asahi Kasei Corp (3407.T)
Asahi Kasei has decided to reduce the operating rate at a
443,000 tonne-per-year ethylene plant in western Japan to 95
percent from early July, the Nikkei business daily said on
Saturday. [ID:nT275987]
-- Hitachi Construction Machinery Co (6305.T)
Hitachi Construction is considering building a plant in
Russia and may boost capital spending to cash in on voracious
demand in emerging economies, Chief Executive Officer Michijiro
Kikawa told Reuters in an interview on Friday. [ID:nT304517]
-- Nippon Oil Corp (5001.T)
Nippon Oil, Japan's largest refiner, said on Friday it plans
to refine 4 percent less crude oil in July than a year earlier,
due to slow domestic sales and high inventories of gasoline.
[ID:nT275187]
-- Zephyr Co 8882.T
Zephyr, an apartment developer, on Friday widened its group
net loss forecast for the year to March 31 to 10.77 billion yen
from 6.8 billion yen after booking a special loss on its sale of
shares in SBI Holdings (8473.T).
Zephyr said it decided to sell the stock at a loss to procure
funds at a time when the real estate industry outlook has become
increasingly uncertain. It said in a statement it will use the
funds to help pay down interest-bearing debt.
-- Amada Co (6113.T)
Amada plans to invest about 20 billion yen to build a factory
for machine tools in Gifu Prefecture as it aims to boost sales of
such products by 60 percent by the business year to March 2012,
the Nikkei business daily reported on Saturday.
-- Asahi Breweries Ltd (2502.T)
Asahi Breweries is expected to post a group operating profit
of about 24.5 billion yen for the fiscal half year ending on June
20, rising 6 percent on the year instead of falling 5 percent to
22 billion yen as originally forecast, the Nikkei business daily
said on Saturday.
Cost cuts in promotion and advertising have led to
bigger-than-expected savings, offsetting sluggish beer sales, the
Nikkei added.
-- Pigeon Corp (7956.T), Uni-Charm Corp (8113.T)
The two companies are looking to India for business chances,
taking aim at a growing number of wealthy and middle-class
families, the Nikkei business daily said on Monday.
Pigeon, a major maker of baby care goods which has been
selling its products in India through a local agent since 2003,
plans to set up an office of its own in Mumbai in October, hoping
to triple sales to 600 million yen by the year to January 2011,
the Nikkei said.
Uni-Charm, which makes feminine hygiene products and
disposable diapers, plans to enter the Indian market by the end
of March 2009, with either feminine hygiene products or its Mommy
Poko brand of disposable diapers candidates for sales.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
