Nikkei to edge up, but gains limited; eyes on yen
TOKYO, Nov 16 (Reuters) - Japan's Nikkei stock average islikely to edge higher on Monday after Wall Street gained on hopesfor a good holiday sales season, but a slightly stronger yen mayweigh on exporters such as Canon Inc (7751.T)
Little impact is expected from Japanese July-September grossdomestic product (GDP) data due out shortly before the openunless it deviates much from expectations, market analysts said.
The median estimate for July-September growth is 0.7 percentgrowth. That compares with 0.6 percent growth in April-June,which was the first growth in five quarters."I don't expect there to be any big surprises in GDP.Everyone knows the first half of the year was good and that thereare uncertainties ahead," said Yutaka Miura, senior technicalanalyst at Mizuho Securities.
"The GDP figures are unlikely to be the basis for eitheractive buying or active selling."
In the United States, good results from Walt Disney Co(DIS.N) and retailer Abercrombie & Fitch (ANF.N), and an upbeatview from JC Penney Co Inc (JCP.N), helped led Wall Streethigher. But in Tokyo, fundraising news may dominate.
One stock in focus may be Hitachi Ltd (6501.T), Japan'sbiggest electronics firm by revenues. Sources familiar with thematter said Hitachi plans to raise up to 400 billion yen ($4.5billion) by issuing new shares and convertible bonds to shore upits battered capital base. [ID:nT23766]
Another is Mitsubishi UFJ Financial Group (8306.T), Japan'slargest bank, which three sources said will issue about $11billion in new shares to meet stricter capital requirements andboost lending in Asia. [ID:nBNG152533]
Though market players will keep an eye on the movements ofthe yen against the dollar, as well as the direction of Nikkeifutures, activity is likely to be dominated by share-specificfactors rather than sector-wide ones.
The benchmark Nikkei .N225 is likely to move between 9,700and 9,900. It closed at 9,770.31 on Friday to finish its thirdstraight negative week.
In a sign the market may open higher, Nikkei futures tradedin Chicago 2NKc1 closed at 9,785, up 0.4 percent from the Osakaclose JNIc1. ----------------------MARKET SNAPSHOT @ 2246 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1093.48 0.57% 6.240 USD/JPY JPY= 89.57 0.06% 0.050 10-YR US TSY YLD US10YT=RR 3.4233 -- 0.000 SPOT GOLD XAU= 1117.9 -0.05% -0.600 US CRUDE CLc1 76.35 0.00% -0.590 DOW JONES .DJI 10270.47 0.72% 73.00 -------------------------------------------------------------> Wall St gains on retail hopes, Disney results [.N]> US dollar falls broadly as data spurs growth fears [USD/]> Debt prices steady as equities offset data [US/]> Gold rises, near record high as dollar drops [GOL/]> Oil falls on high inventories, weak demand [O/R]STOCKS TO WATCH
-- Mizuho Financial Group (8411.T), Sumitomo Mitsui FinancialGroup (8316.T)
Mizuho Financial's first profit in five quarters and rivalSumitomo Mitsui's doubling of profit signal Japan's major banksare recovering from the economic crisis, albeit slowly.[ID:nSP42968]
-- Honda Motor Co (7267.T)
Honda will halt output of motorcycles in Spain at the end ofMarch reflecting a steep downturn in Europe, with bike output inEurope to move to Italy, the Nikkei business daily said onSunday. [ID:nT15365]
-- Japan Airlines (9205.T)
JAL recorded its fourth straight quarterly loss on Fridayamid sliding demand and applied for a debt moratorium with itsmain banks as it seeks its fourth state bailout since 2001.[ID:nT82365]
-- Idemitsu Kosan Co (5019.T)
Idemitsu, Japan's third-largest refiner, said on Friday itwould buy British oil Explorer Petro Summit Investment UK Ltd, asubsidiary of Japanese traing house Sumitomo Corp (8053.T)
-- Matsumotokiyoshi Holdings (3088.T), Midoriyakuhin Co(2718.Q)
Matsumotokiyoshi said it will launch a 1.56 billion yentender offer for a majority stake in Midoriyakuhin, offering80,000 yen per Midoriyakuhin share. It will then acquire allremaining shares in Midoriyakuhin through a share swap. (Reporting by Elaine Lies)
Source: Reuters
