August 18th, 2008 | by admin |
TOKYO, Aug 18 (Reuters) - Japan's Nikkei average is expectedto start lower on Monday, with worries about economies outsidethe United States weighing on investor sentiment, but exporterssuch as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) may gain on a softer yen.
"It may open lower as Chicago futures ended lower, but theoverall environment isn't too bad," said Kazuhiro Takahashi,general manager of the equity marketing department at DaiwaSecurities SMBC.
The U.S. Dow and S&P 500 rose on Friday, as sinking commodityprices raised hopes of a recovery in consumer spending, helpingpush shares of retailers higher. [.N]
"But we'll need to watch how investors interpret a growingdifference in economic outlooks between the U.S., which is prettystrong, and Europe where growth is contracting," Takahashi said.
Data last week showed the euro zone joined Japan in movinghalf way into a recession -- technically defined as twosuccessive quarters of growth contraction -- after gross domesticproduct fell in the second quarter.
That compares with the United States, where GDP expanded 0.5percent.
Nikkei futures traded in Chicago 2NKc1 closed at 12,960 onFriday, 70 points below their close in Osaka JNIc1, pointing toa lower opening.
The benchmark Nikkei .N225 is expected to trade between12,900 and 13,100, market participants said. It rose 0.5 percentto finish at 13,019.41 on Friday but fell 1.1 percent for theweek.
Investors are watching a monetary policy meeting by the Bankof Japan that starts on Monday and ends on Tuesday. The centralbank is expected to downgrade its view of the economy in a signalthat crumbling export markets can no longer offer factoriesenough business to keep Japan out of recession. [ID:nT123416]----------------------MARKET SNAPSHOT @ 2258 GMT ------------
INSTRUMENT LAST PCT CHG NET CHGS&P 500 .SPX 1298.2 0.41% 5.270USD/JPY <JPY=> 110.31 -0.18% -0.20010-YR US TSY YLD <US10YT=RR> 3.8481 -- 0.000SPOT GOLD <XAU=> 794 1.08% 8.500US CRUDE CLc1 113.63 -0.12% -0.140DOW JONES .DJI 11659.90 0.38% 43.97-------------------------------------------------------------> Dow, S&P 500 rise as lower oil lifts retailers [.N]> Dollar posts 5th weekly gain vs euro [USD/]> Yields at 1-mo low as inflation fears recede [US/]> Precious metals find floor after broad sell-off [GOL/]> Oil falls below $114 on global demand worries [O/R]
STOCKS TO WATCH-- Central Japan Railway Co (JR Tokai) (9022.T: Quote, Profile, Research, Stock Buzz), NipponSharyo Ltd. (7102.T: Quote, Profile, Research, Stock Buzz)
Central Japan Railway Co (JR Tokai) said on Friday it wouldbid 26.23 billion yen ($237.6 million) to take a majority stakein rolling stock maker Nippon Sharyo, aiming to help expeditedevelopment of advanced and cost-efficient rolling stock.
JR Tokai, which aims to boost its stake in Nippon Sharyo to50.1 percent from 1.8 percent, hopes closer ties will help itsplans to start linear motor car or maglev services between Tokyoand Nagoya, central Japan, by 2025. [ID:nT168074]
-- Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz), Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz)
Sony and Toshiba are set to sharply increase the percentageof their LCD televisions outsourced to Taiwanese manufacturers asa cost-cutting move, the Nikkei business daily said on Saturday.[ID:nT212444]
-- Daiwa House Industry Co (1925.T: Quote, Profile, Research, Stock Buzz), Sekisui House Ltd(1928.T: Quote, Profile, Research, Stock Buzz) and other home builders
Japan's Land Ministry is aiming to provide additional incometax credits for buyers of energy-efficient and durable homes inan effort to help revive the sluggish housing market, the Nikkeireported on Saturday.
It will ask the Ministry of Finance to lift the ceiling onmortgage deductions for these types of homes as part of fiscal2009 tax reform, the newspaper said.-- Suzuki Motor Corp (7269.T: Quote, Profile, Research, Stock Buzz)
Suzuki Motor plans to develop cars that run completely onbioethanol fuel and begin selling them in South America and theUnited States around 2010, the Nikkei reported on Saturday.
-- Imperial Hotel (9708.T: Quote, Profile, Research, Stock Buzz)
A fire broke out at the Imperial Hotel in Tokyo's ChiyodaWard on Sunday night, and about 500 hotel guests were evacuatedfrom the building, Kyodo news agency reported.
The fire damaged a ceiling but there were no reports ofinjuries, Kyodo said.
-- Aderans Holdings Co (8170.T: Quote, Profile, Research, Stock Buzz)
The wig maker cut its full-year profit outlook on Friday,hurt by weak sales of female wigs in Japan and dismal hairtransplant business in the U.S. amid an economic slowdown.
It now expects its operating profit to fall to 2.7 billionyen for the year ending in February 2009, down from 5.4 billionyen in the previous forecast. ($1=110.41 Yen) (Reporting by Aiko Hayashi; Editing by Michael Watson)