Nikkei likely to move little before GM, economy data

TOKYO (Reuters) - Japan's Nikkei share average is likely to hover in a tight range on Monday after a slide late last week on Wall Street, with investors expected to hold back ahead of economic data this week and news on the fate of General Motors GM.N.

Japanese construction machinery maker Komatsu (6301.T) may draw some attention after the Nikkei business daily said the company was likely to issue around 40 billion yen ($422 million) in straight bonds this month to secure cash for loans to its units.

"The market will likely be rangebound as investors take a wait-and-see stance ahead of GM news and economic indicators such as U.S. housing data," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.

"Trade will also likely be thin with U.S. and British markets closed today."

GM is facing a June 1 deadline to work out issues with creditors if it wants to avoid a bankruptcy filing. On Friday, a spokesman for some of GM's creditors said the biggest bondholders of roughly $27 billion in debt plan to reject GM's current offer for a 10 percent equity stake.

U.S. existing home sales data are released on Wednesday and new home sales are released on Thursday. Both reports will cover April data.

Nikkei futures traded in Chicago closed at 9,220 on Friday, down 0.1 percent from the Osaka close, which may point to little change at the start of the day.

Market participants expect the benchmark Nikkei .N225 to move between 9,100 and 9,300 on Monday. It fell 0.4 percent on Friday to end at 9,225.81. On the week, it inched down 0.4 percent.

The Dow Jones industrial average .DJI dipped 0.2 percent on Friday ahead of the long Memorial Day holiday weekend.

Ratings agency Standard & Poor's rattled markets on Thursday when it said it might cut Britain's AAA credit rating because of the danger of soaring public debt, sparking fears of similar action against the United States.