Monday June 18, 7:35 AM
Nikkei may climb on US stock gains, softer yen
TOKYO, June 18 (Reuters) - A gain in U.S. stocks and a weaker
yen are likely to keep helping Japanese stocks rise on Monday,
pushing up high-tech exporters such as Canon Inc. .
One issue in focus may be Resona Holdings Inc. .
Japan's fourth-largest bank is in talks to issue about 100
billion yen worth of preferred shares to Dai-Ichi Mutual Life
Insurance Co. to help it repay public funds, financial sources
said.
"The Nikkei is likely to have a strong start after U.S.
stocks continued to rise and following the softer yen," said
Kazuhiro Takahashi, a general manager in the equity marketing
department at Daiwa Securities SMBC.
"The index could try for 18,300, maybe next week, if
foreigners start buying more actively," he added.
Nikkei futures point to a rise in share prices. Contracts
traded in Chicago finished Friday at 18,180, up 160
points from the close in Osaka .
The benchmark Nikkei average rose 0.72 percent on
Friday to end at 17,971.49, a tad short of 18,000 but the highest
close since June 7.
The index hit 18,300.39 on Feb. 26, its highest for the year.
Market participants said the Nikkei was likely to move
between 18,000 and 18,200 on Monday.
In New York, the dollar rallied to a fresh 4-1/2-year high
against the yen of 123.66 yen on Friday after the Bank of
Japan indicated it was in no hurry to raise interest rates.
A weaker yen is a boon to companies that make the bulk of
their sales abroad because it boosts profits when earnings from
abroad are brought home.
U.S. stocks rose for a third straight day on Friday. The
tech-heavy Nasdaq Composite Index climbed 1.05 percent to
close at 2,626.71.
STOCKS TO WATCH
-- Kawasaki Heavy Industries Ltd.
Kawasaki Heavy plans to invest about 20 billion yen ($162
million) to build a second plant in Japan to make components for
Boeing Co.'s 787 Dreamliner, seeing strong demand for the
midsize passenger jet, the Nikkei business daily said on Monday.
-- Hoya Corp. , Pentax Corp. .
Hoya said on Friday it would launch its $854 million tender
offer around July 3, compared with early June as originally
scheduled. Hoya also said on Friday it had cut by half the
minimum number of shares it aims to acquire in a tender offer for
Pentax. [ID:nT177423]
-- Mitsubishi Heavy Industries Ltd. and other
defence contractors
Japan and the United States are set to allow private defence
contractors to directly share and transfer information on defence
technology, the Nikkei business daily said on Sunday.
[ID:nT203616]
-- Welcia Kanto Co.
Welcia Kanto, a drugstore chain affiliated with retailer Aeon
Co. , will join hands with nursing-home operator Wisnet
Co. and offer to buy all of Goodwill Group Inc.'s
scandal-hit nursing care operations, the Nikkei business reported
on Saturday. [ID:nT197333]
-- Nova Corp.
Nova, the nation's biggest operator of English language
schools, is considering several offers of a possible business or
capital alliance, the daily Yomiuri Shimbun said on Saturday.
[ID:nT195995]
-- Asahi Glass , Mitsubishi Electric Corp.
Asahi Glass and Mitsubishi Electric are selling their
money-losing liquid crystal display-making joint venture Optrex
Corp., sources familiar with the situation told Reuters on
Friday. [ID:nT232364]
-- Toyota Motor Corp.
Toyota said on Friday it is offering up to $3,500 in rebates
or interest-free loans for five years on its redesigned Tundra
pickup truck in United States. [ID:nN15398710]
-- Sony Corp.
Sony apologised on Friday to a northern English cathedral
which had accused the company of "virtual desecration" because
the religious building's interior features in a violent video
game. [ID:nL15698948]
-- Ebara Corp.
Ebara has developed a new drug delivery system that enhances
the efficacy of cancer treatment by delivering medication only to
cancer cells, the Nikkei business daily reported on Sunday.
($1=123.40 Yen)
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