Yahoo!  My Yahoo!  Mail
				News Home - Help

News Home Top Stories World Asia Pacific Business Technology Entertainment Sports Photos -- News by Country -- Indonesia Malaysia Philippines Singapore Thailand -- Greater Asia -- China Hong Kong Taiwan
	Yahoo! Asia News Search Yahoo! News

		advertisement
Monday July 2, 7:33 AM Nikkei likely rangebound but tankan may hold key TOKYO, July 2 (Reuters) - Japan's Nikkei stock average is expected to move in a tight range on Monday after a slight fall on Wall Street, though much will depend on the "tankan" survey of corporate sentiment due out before the open. A rise in the price of oil and copper could spark buying of energy and commodities-related shares such as trading house Mitsubishi Corp. , while Lion Corp. may jump on a higher profit forecast and its deal to buy the trademark rights to a key drug. Market players will be watching the Bank of Japan's tankan quarterly business sentiment survey at 2350 GMT for further clues on the next rate hike. A consensus forecast calls for unchanged readings for large manufacturers and large non-manufacturers, and improved capital expenditure plans to around 9 percent from 2.9 percent. "If the tankan comes in close to the consensus that will probably support the market, but I don't think we can expect much of a rally unless the reading is really strong," said Yutaka Miura, deputy manager of equity information at Shinko Securities. "We are probably looking at rangebound trade today, with investors wanting to keep an eye on further moves on Wall Street and the yen." Analysts said the Nikkei average would move between 18,000 and 18,250 on Monday after finishing the previous session up 1.15 percent at a one-week high of 18,138.36. Nikkei futures point to a slightly higher opening. Contracts traded in Chicago finished the previous session at 18,180, up 20 points from the close in Osaka . On Wall Street on Friday, the Standard & Poor's 500 Index slipped 0.16 percent as banks and brokers retreated on concerns about the impact of tightening credit on takeovers and the subprime mortgage industry. Kazuhiro Takahashi, general manager of the equity marketing department of Daiwa Securities SBMC, said he saw little impact on the Tokyo stock market from weekend news of failed car bombings in London. [ID:nL30355604] Takahashi said a strong reading from the tankan would fuel buying of bank shares. "A robust reading from the tankan would raise speculation of a rate hike soon from the BOJ, which would draw buyers to banks," he said. STOCKS TO WATCH -- Lion Corp. The maker of households goods said on Friday it would buy the trademark rights for the painkiller "bufferin" and other brands in Japan and other Asian and Oceania countries from Bristol-Myers Squibb for 30.4 billion yen. [ID:nT347534] Lion also raised its group net profit forecast for the first half to end-June by 80 percent to 1.8 billion yen due to strong sales overseas and a weaker yen. -- Fujitsu Ltd. The Japanese company will look at other potential acquisition targets in France if its $530 million bid for French computer services firm GFI Informatique fails, an executive said in an interview with Reuters on Friday. [ID:nT330160] The French Finance Ministry has cleared Fujitsu's offer for GFI, the AMF stock market watchdog said on Friday. The offer will open on July 2. [ID:nL29367257] -- Softbank Corp. Softbank, which shouldered massive debt after acquiring the local mobile phone unit from Vodafone Group Plc last year, said on Friday it raised 88 billion yen ($715 million) from liquidating securitised handset instalments. [ID:nT330223] -- Isuzu Motors Ltd. and Hino Motors Ltd. Isuzu and Hino plan to work together to develop technology for cleaning up diesel engine emissions, the Nikkei business daily reported on Saturday. The two truck makers will develop equipment such as filters that reduce harmful substances released in emissions. They aim to cut costs by adopting the same technology and supplying parts to each other, the newspaper said. -- Asahi Breweries Ltd. The beer maker will likely post a 9 percent fall in group pretax profit for the first half to June to about 27 billion yen, missing its forecast of 29.7 billion yen due to struggling beer sales, the Nikkei business daily reported on Saturday. -- Brother Industries Ltd. Brother Industries will invest up to 130 billion yen over the next three years on research and development, picking up the pace of spending to bolster development of new products, the Nikkei business daily reported on Saturday. The move was spurred by a request by U.S. activist fund Steel Partners to boost its dividend. Brothers has decided instead to boost R&D spending to improve competitiveness and return profits to shareholders over the long term, the newspaper said.