Nikkei likely to fall on Wall St, machine data eyed

TOKYO, Jan 15 (Reuters) - Japan's Nikkei share average is
likely to fall on Thursday on a firmer yen and after worries
about steeper losses at banks worldwide and a deepening recession
sent U.S. stocks to six-week lows.

Japan's core machinery orders data, a leading indicator of
capital spending, due out before the open will also be in focus.
Economists expect an 8.1 percent fall in November from the
previous month as the global economic downturn battered overseas
demand. [ID:nT164334]

"The Nikkei may test 8,000, hit by worries about the
financial sector such as Citigroup's results and slumping U.S.
retail sales," said Yoku Ihara, manager at Retela Crea
Securities.

"Stocks are likely to fall across the board, though exporters
in particular will be in a tough position on the fall in U.S.
stocks and the stronger yen."

Nikkei futures traded in Chicago 2NKc1 closed at 8,175 on
Wednesday, 195 points below the Osaka close JNIc1, pointing to
a lower opening.

Market participants expect the benchmark Nikkei .N225 to
trade between 8,000 and 8,300 on Thursday. It rose 0.3 percent
the previous day to 8,438.45.

In the United States, the S&P 500 .SPX and Nasdaq .IXIC
tumbled more than 3 percent, and all 30 Dow .DJI stocks were in
the red, including Citigroup (C.N). The bank shed more than 23
percent as it is expected to post a multibillion-dollar loss this
week. [ID:nN14452851]

U.S. stock futures NDc1 also fell after technology
bellwether Apple Inc (AAPL.O) said that its chief executive,
Steve Jobs, will take a medical leave of absence until June.
[ID:nN14482740]
----------------------MARKET SNAPSHOT @ 2302 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 842.62 -3.35% -29.170
USD/JPY JPY= 88.9 -0.12% -0.110
10-YR US TSY YLD US10YT=RR 2.2059 -- 0.000
SPOT GOLD XAU= 809.5 -0.13% -1.050
US CRUDE CLc1 37.44 0.43% 0.160
DOW JONES .DJI 8200.14 -2.94% -248.42
-------------------------------------------------------------
> Wall St falls on bank anxiety, Apple down after bell [.N]
> Euro down on Greece downgrade, risk appetite fades [USD/]
> Prices jump as weak retail sales send stocks down [US/]
> Gold falls on weak demand, dollar rise; ECB eyed [GOL/]
> Oil falls on U.S. stock build, weak demand [O/R]
STOCKS TO WATCH

-- Nissan Motor Co (7201.T)

Nissan, Japan's third-largest automaker, is now expected to
post an operating loss this business year due to sliding sales
and a stronger yen, the Yomiuri newspaper said on Thursday.
[ID:nT193036]

Separately, a Nissan spokesman said the automaker is
maintaining a four-day work week indefinitely for its two U.S.
auto assembly plants amid the auto industry downturn.
[ID:nN14357227]

-- Hitachi Ltd (6501.T), Hitachi Koki (6581.T), Hitachi
Kokusai (6756.T)

Japanese electronics conglomerate Hitachi said on Wednesday
it would spend $300 million to acquire majority stakes in its
affiliates Hitachi Koki (6581.T) and Hitachi Kokusai (6756.T) to
take advantage of group resources. [ID:nT138196]

-- Hokkaido Gas Co (9534.T)

Japanese gas distributor Hokkaido Gas said it plans to start
operations at the liquefied natural gas (LNG) import terminal in
northern Japan it is building earlier than planned because of
growing demand. [ID:nT12908]
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)