TOKYO, March 26 Japan's Nikkei average is
expected to open lower on Tuesday on concerns over the stability
of the euro zone's banking system after a senior official said
the Cyprus rescue could be a new template to deal with other
regional banking problems.
The Cyprus deal is forcing depositors and bank bondholders
to bear losses, and Dutch Finance Minister Jeroen Dijsselbloem,
who heads the Eurogroup of euro zone finance ministers, said the
Cyprus bailout represented a new template for resolving banking
problems in the currency bloc.
"There is a concern that similar bailout plan or similar
structure for deposit losses will be used on other countries
that need a bailout," said Takashi Hiroki, chief strategist at
"The Nikkei rose sharply yesterday, so profit-taking will be
dominant in today's market."
The Nikkei is likely to trade between 12,400 and
12,500, strategists said, after gaining 1.7 percent to 12,546.46
on Monday. The broader Topix index added 0.8 percent to
Nikkei futures in Chicago closed at 12,390 on
Monday, down 1 percent from the Osaka close of 12,510.
The benchmark Nikkei has rallied nearly 45 percent since
mid-November, when Prime Minister Shinzo Abe unveiled proposals
during his election bid for expansionary fiscal and monetary
policies to revive the economy.
> Wall St ends lower on renewed Cyprus worries
> Euro at 4-month low vs US dollar on Cyprus deal anxiety
> Treasuries gain as Cyprus comments spark worry over banks
> Gold down as Cyprus deal reduces safe-haven appeal
> Oil rises in choppy trade after Cyprus bailout deal
STOCKS TO WATCH
--GS YUASA CORP, ALL NIPPON AIRWAYS, JAPAN
A Boeing Co 787 Dreamliner took to the sky on Monday
in the first of two flights aimed at showing that the plane's
new lithium-ion battery system meets regulator safety standards,
a key step towards ending a two-month, worldwide grounding of
the high-tech jet.
GS Yuasa is the battery maker for the Dreamliner.
Westinghouse, a unit of Toshiba, has taken the lead over a
Russian-led consortium in a tender to expand the Temelin nuclear
power plant, the biggest-ever Czech industrial project, company
officials said on Monday.
--GUNGHO ONLINE ENTERTAINMENT INC, SOFTBANK CORP
Softbank Corp's mobile unit said on Monday that it would
launch a tender offer to increase its stake in Gungho Online
Entertainment Inc, making the game developer a wholly
Softbank Mobile Corp, a subsidiary of the Japanese mobile
operator, is already the top shareholder in Gungho Online
Entertainment with a 33 percent stake.
--CHUGAI PHARMACEUTICAL CO LTD
Chugai, a subsidiary of Roche Holding AG, said on
Monday that Japanese health regulators had approved a new
formulation of its rheumatoid arthritis drug Actemra.