TOKYO, Aug 12 (Reuters) - Japan's Nikkei average is set to
dip on Wednesday, after a fall in U.S. stocks on resurgent
concerns about the strength of a U.S. economic recovery, with
exporters such as Sony Corp (6758.T) likely to be hurt by a
stronger yen.
Investors may focus on Sapporo Holdings (2501.T) after the
Nikkei business daily said the company will buy a 20 percent
stake in drinksmaker Pokka Corporation as part of a three-way
tie-up with Meiji Holdings (2269.T).
U.S. stocks fell on Tuesday after a prominent banking analyst
warned the sector's fundamentals have yet to improve, and an
unexpectedly large drop in wholesale inventories raised worries
about an economic recovery.
"There are growing signs that the Nikkei's a bit overbought,
and investors are waiting for the policy statement from the
Federal Reserve today and U.S. economic data due out later in the
week," said Hiroichi Nishi, general manager at the equity
division of Nikko Cordial Securities.
"Still, the spreading sense of economic recovery and the
feeling that company results are past the worst will lead to
bargain-hunting on dips, keeping any downward moves limited."
The dollar lost more than 1 percent against the yen on
Tuesday but was flat against the Japanese currency at 96 yen
JPY=.
Analysts said the benchmark Nikkei .N225 was expected to
move from 10,400 to 10,550. It closed at 10,585.46, a 10-month
closing high, on Tuesday.
In a sign of a lower open, Nikkei futures traded in Chicago
2NKc1 fell 0.8 percent from the Osaka close of 10,580 JNIc1
----------------------MARKET SNAPSHOT @ 2257 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 994.35 -1.27% -12.750
USD/JPY JPY= 96 0.06% 0.060
10-YR US TSY YLD US10YT=RR 3.6717 -- 0.000
SPOT GOLD XAU= 945.6 0.11% 1.050
US CRUDE CLc1 69.78 0.48% 0.330
DOW JONES .DJI 9241.45 -1.03% -96.50
-------------------------------------------------------------
> Wall Street weighted down by financial stocks [.N]
> Yen rises on China's lacklustre data, risk aversion [USD/]
> Prices rise on stock slide, strong auction [US/]
> Gold ends tad higher; focus on dollar, Fed [GOL/]
> Oil falls as U.S. data damps recovery hopes [O/R]
STOCKS TO WATCH
-- Tokuyama Corp (4043.T)
Tokuyama Corp, Japan's biggest polysilicon maker, will invest
65 billion yen ($673 million) in a planned plant in Malaysia to
boost its polysilicon production capacity by 75 percent and meet
demand from solar cell makers. [ID:nT178279]
-- Sompo Japan Insurance (8755.T)
Non-life insurer Sompo Japan on Tuesday announced a first
quarter group net loss of 3.8 billion yen, in contrast to the
strong profits posted by other major nonlife insurers.
(Reporting by Elaine Lies)
