Monday July 9, 7:35 AM
Nikkei may follow Wall St. up but machinery data key
TOKYO, July 9 (Reuters) - A rise on Wall Street is likely to
help Japanese exporters such as Advantest Corp. on
Monday, but the market is seen taking its early cues from
machinery orders data due just before the start of trade.
One stock in focus may be Toshiba Corp. . A Toshiba
source said on Saturday the firm is in talks to sell 10 percent
of its stake in nuclear power unit Westinghouse to Kazakh state
firm Kazatomprom. [ID:nT25218]
"Today's market moves are likely to depend on the reading in
the machinery data," said Kazuhiro Takahashi, a general manager
in the equity marketing department at Daiwa Securities SMBC.
"If the data show solid results, the Nikkei could try for
18,300 as machinery stocks are likely to gain."
Nikkei futures traded in Chicago finished Friday at
18,205.00, 55 points above the Osaka close , pointing to a
slightly higher opening.
Takahashi said the Nikkei would likely move between 18,000
and 18,250 on Monday after ending the previous session down 0.44
percent at 18,140.94, down for the first time in seven sessions.
Core machinery orders, a highly volatile figure regarded as a
leading gauge of capital spending, likely rose 2.3 percent in
May, according to economists polled by Reuters. [ID:nT45980]
U.S. stocks gained on Friday as rising oil prices lifted
energy shares and a strong jobs report reassured investors about
the economy. The Dow Jones industrial average ended up
0.34 percent at 13,611.68.
Separately, senior Toshiba executives told Reuters on Sunday
they expect the company's LCD TV business in China to grow by
more than 25 percent next year amid strong consumer demand ahead
of events such as the Beijing Olympics in 2008 and the Shanghai
World Expo in 2010. [ID:nLA172496]
STOCKS TO WATCH
-- All Nippon Airways Co.
ANA aims to boost earnings by 10 billion yen a year by
introducing Boeing Co.'s new 787 Dreamliner midsize
jetliner, the Nikkei business daily reported on Monday, citing
ANA President Mineo Yamamoto. Yamamoto also said he wanted to
continue paying at least 5 yen per share in annual dividends, and
was willing to raise that, according to the report.
In a separate interview with the Yomiuri newspaper, the ANA
chief said his company may consider launching a commercial route
between Haneda airport in Tokyo and Russia as early as fiscal
2009.
-- DaVinci Advisors , TOC Inc.
Property investor DaVinci Advisors has secured the support of
shareholders holding about 47 percent of TOC, nearly enough to
grab control of the building leasing firm in what would be
Japan's first successful hostile bid, the Nikkei newspaper said
on Saturday. [ID:nT20318]
-- Resona Holdings Inc.
Nippon Life Insurance Co., Japan's largest insurer, plans to
invest "tens of billions of yen" in Resona Holdings by buying
preferred shares to be issued by Resona later this year, Kyodo
news agency reported on Saturday. [ID:nT14550]
-- Toray Industries Inc.
Toray, the sole supplier of carbon fibres used in Boeing's
787 Dreamliner, will consider additional investments in its
carbon fibre output capacity if demand stays strong, a Toray
executive told Reuters on Friday. [ID:nT34216]
-- Sony Corp.
Sony President Ryoju Chubachi told Reuters in an interview on
Friday that the operating profit margin in its mainstay
electronics unit is likely to overshoot its target of 4 percent
for this year to March 2008. [ID:nT49905]
-- Nippon Sheet Glass Co.
Nippon Sheet Glass on Friday sharply raised its net profit
forecast for the year to March 2008 due to gains from its sale of
auto and construction glass maker Pilkington Australasia.
The company said after the market close on Friday that it now
expects to post a group net profit of 35-45 billion yen, up from
its prior forecast for a 15 billion yen profit. It left its
pretax and sales forecasts unchanged.
-- Mitsui Chemicals Inc.
Mitsui Chemicals will spend about 20 billion yen to build a
factory in Singapore by summer 2009 to produce polyolefin
elastomer, a resin used to make auto bumpers and other products,
the Nikkei business daily reported on Sunday.
-- NEC Electronics Corp.
NEC Electronics' China unit expects its net profit to grow at
around 10 percent annually over the next few years, on strong
demand for chips for audiovisual products, a senior executive
said on Saturday. [ID:nSHA229995]
-- Nissan Motor Co.
Nissan hopes new models will boost its vehicle sales in China
this year by more than a third, its China president said on
Sunday. [ID:nSHA4343]
-- Taisei Corp. and other builders
Japan's infrastructure ministry suspended 55 construction
companies Friday from its tenders as designated bidders for up to
four months to punish them for their involvement in bid-rigging
over defence facility projects, Kyodo News reported on Friday.
The 55 included Taisei, Kajima Corp. and Obayashi
Corp. , Kyodo said.
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