Japan stocks seen hurt by US tumble, strong yen

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TOKYO, Nov 8 (Reuters) A Wall Street tumble on heightened credit fears and a stronger yen are seen dragging down Japanese stocks on Thursday, particularly hurting exporters such as Canon Inc, with Toyota Motor Corp's strong earnings results doing little to soothe investor sentiment.

The market will watch machinery orders data due before the start of trade but the main focus is on currency moves, said Yutaka Miura, deputy manager of the equity information department at Shinko Securities. He said Toyota's solid results had already been priced in.

''Stocks will likely be sold across the board. Japan will be hit by a 'double punch' of a drop in U.S. stocks and a strong yen,'' Miura said.

''The Nikkei will probably break 16,000, but later trade will depend on yen/dollar moves.'' Nikkei futures traded in Chicago closed at 15,850.00 on Wednesday, down 280 points from the Osaka close indicating a lower opening.

The dollar was around 112.45 yen down from 112.77 yen in New York. It fell on Wednesday after comments by a Chinese official stoked fears that China would reduce its holdings of U.S. assets.

Market participants said the Nikkei average is likely to trade between 15,800 and 16,000. In its fourth straight losing session on Wednesday the benchmark ended down 0.94 percent, its lowest close since Sept. 18.

US stocks tumbled on Wednesday as a probe of the home loan industry by New York's attorney general drew in the country's biggest mortgage finance companies and Washington Mutual Inc warned the housing downturn would extend well into next year.

The Dow Jones industrial average sank 2.64 percent to end at 3,300.02.

Toyota, the world's most profitable automaker, posted a 2.7 per cent rise in quarterly operating profit on Wednesday thanks to a weaker yen, stronger sales and cost cuts, and nudged up its full-year forecasts.

General Motors Corp, the largest U.S. automaker, posted a record loss for the third quarter.

Core machinery orders, a highly volatile figure regarded as a leading gauge of capital spending, are expected to have declined 1.5 per cent in September, according to economists polled by Reuters.

STOCKS TO WATCH -- Kirin Holdings T> Japanese brewery Kirin has offered A TOKYO, Nov 8 (Reuters) A Wall Street tumble on heightened credit fears and a stronger yen are seen dragging down Japanese stocks on Thursday, particularly hurting exporters such as Canon Inc, with Toyota Motor Corp's strong earnings results doing little to soothe investor sentiment.

The market will watch machinery orders data due before the start of trade but the main focus is on currency moves, said Yutaka Miura, deputy manager of the equity information department at Shinko Securities. He said Toyota's solid results had already been priced in.

''Stocks will likely be sold across the board. Japan will be hit by a 'double punch' of a drop in U.S. stocks and a strong yen,'' Miura said.

''The Nikkei will probably break 16,000, but later trade will depend on yen/dollar moves.'' Nikkei futures traded in Chicago closed at 15,850.00 on Wednesday, down 280 points from the Osaka close indicating a lower opening.

The dollar was around 112.45 yen down from 112.77 yen in New York. It fell on Wednesday after comments by a Chinese official stoked fears that China would reduce its holdings of U.S. assets.

Market participants said the Nikkei average is likely to trade between 15,800 and 16,000. In its fourth straight losing session on Wednesday the benchmark ended down 0.94 percent, its lowest close since Sept. 18.

US stocks tumbled on Wednesday as a probe of the home loan industry by New York's attorney general drew in the country's biggest mortgage finance companies and Washington Mutual Inc warned the housing downturn would extend well into next year.

The Dow Jones industrial average sank 2.64 percent to end at 3,300.02.

Toyota, the world's most profitable automaker, posted a 2.7 per cent rise in quarterly operating profit on Wednesday thanks to a weaker yen, stronger sales and cost cuts, and nudged up its full-year forecasts.

General Motors Corp, the largest U.S. automaker, posted a record loss for the third quarter.

Core machinery orders, a highly volatile figure regarded as a leading gauge of capital spending, are expected to have declined 1.5 per cent in September, according to economists polled by Reuters.

STOCKS TO WATCH -- Kirin Holdings T> Japanese brewery Kirin has offered A$2.6 billion ($2.43 billion) for Australian dairy and fruit juice producer National Foods, the Australian Financial Review reported on Thursday.

-- Toyota Motor Corp T> Toyota, the world's biggest and most profitable automaker, posted a 2.7 percent rise in quarterly operating profit on Wednesday thanks to a weaker yen, cost cuts and stronger sales, and raised its full-year forecasts.

-- Autobacs Seven Co Ltd OS> British fund Silchester International Investors has filed for a court injunction to block a $568 million convertible bond issue by Japanese auto parts and accessories retailer Autobacs.

-- Nippon Mining&Metals T>Pan Pacific Copper Co Ltd, Japan's top copper smelter, said on Wednesday it will spend $40 million on a stake in a copper mining project in Peru and a further $400 million to build a production facility there.

Pan Pacific Copper is a joint venture between Nippon Mining&Metals and Mitsui Mining and Smelting Co. Ltd.

-- Citizen Holdings Co Ltd T> Japanese watch maker Citizen revised up its first-half operating profit by 57.1 percent on brisk sales of its radio-controlled watches and a weak yen.

Citizen, which kept its full-year outlook, now expects to post a group operating profit of 12.1 billion yen ($107.8 million) in April-September, up from its previous forecast of 7.7 billion yen, thanks to a focus on high-end radio-synchronised timepieces with higher margins, it said in a release on Wednesday.

-- Nippon Steel Corp T> An executive at Nippon STeel said on Wednesday the company expects its earnings to continue to grow at least for the next few years as demand for automotive sheet steel will remain solid, allowing it to raise prices and absorb the impact of high costs.

-- Sony Corp T> Sony said on Wednesday it will cooperate with U.S. e-learning software provider Blackboard Inc in a FeliCa non-contact card business, in a bid to repeat its Asian success in the United States.

-- NEC Corp T> NEC raised its outlook for the six months ended Sept. 30 on Wednesday to show a smaller net loss on lower costs to make cellphones and microchips, but stuck to its full-year forecast.

REUTERS MP AS0504 .6 billion ( TOKYO, Nov 8 (Reuters) A Wall Street tumble on heightened credit fears and a stronger yen are seen dragging down Japanese stocks on Thursday, particularly hurting exporters such as Canon Inc, with Toyota Motor Corp's strong earnings results doing little to soothe investor sentiment.

The market will watch machinery orders data due before the start of trade but the main focus is on currency moves, said Yutaka Miura, deputy manager of the equity information department at Shinko Securities. He said Toyota's solid results had already been priced in.

''Stocks will likely be sold across the board. Japan will be hit by a 'double punch' of a drop in U.S. stocks and a strong yen,'' Miura said.

''The Nikkei will probably break 16,000, but later trade will depend on yen/dollar moves.'' Nikkei futures traded in Chicago closed at 15,850.00 on Wednesday, down 280 points from the Osaka close indicating a lower opening.

The dollar was around 112.45 yen down from 112.77 yen in New York. It fell on Wednesday after comments by a Chinese official stoked fears that China would reduce its holdings of U.S. assets.

Market participants said the Nikkei average is likely to trade between 15,800 and 16,000. In its fourth straight losing session on Wednesday the benchmark ended down 0.94 percent, its lowest close since Sept. 18.

US stocks tumbled on Wednesday as a probe of the home loan industry by New York's attorney general drew in the country's biggest mortgage finance companies and Washington Mutual Inc warned the housing downturn would extend well into next year.

The Dow Jones industrial average sank 2.64 percent to end at 3,300.02.

Toyota, the world's most profitable automaker, posted a 2.7 per cent rise in quarterly operating profit on Wednesday thanks to a weaker yen, stronger sales and cost cuts, and nudged up its full-year forecasts.

General Motors Corp, the largest U.S. automaker, posted a record loss for the third quarter.

Core machinery orders, a highly volatile figure regarded as a leading gauge of capital spending, are expected to have declined 1.5 per cent in September, according to economists polled by Reuters.

STOCKS TO WATCH -- Kirin Holdings T> Japanese brewery Kirin has offered A$2.6 billion ($2.43 billion) for Australian dairy and fruit juice producer National Foods, the Australian Financial Review reported on Thursday.

-- Toyota Motor Corp T> Toyota, the world's biggest and most profitable automaker, posted a 2.7 percent rise in quarterly operating profit on Wednesday thanks to a weaker yen, cost cuts and stronger sales, and raised its full-year forecasts.

-- Autobacs Seven Co Ltd OS> British fund Silchester International Investors has filed for a court injunction to block a $568 million convertible bond issue by Japanese auto parts and accessories retailer Autobacs.

-- Nippon Mining&Metals T>Pan Pacific Copper Co Ltd, Japan's top copper smelter, said on Wednesday it will spend $40 million on a stake in a copper mining project in Peru and a further $400 million to build a production facility there.

Pan Pacific Copper is a joint venture between Nippon Mining&Metals and Mitsui Mining and Smelting Co. Ltd.

-- Citizen Holdings Co Ltd T> Japanese watch maker Citizen revised up its first-half operating profit by 57.1 percent on brisk sales of its radio-controlled watches and a weak yen.

Citizen, which kept its full-year outlook, now expects to post a group operating profit of 12.1 billion yen ($107.8 million) in April-September, up from its previous forecast of 7.7 billion yen, thanks to a focus on high-end radio-synchronised timepieces with higher margins, it said in a release on Wednesday.

-- Nippon Steel Corp T> An executive at Nippon STeel said on Wednesday the company expects its earnings to continue to grow at least for the next few years as demand for automotive sheet steel will remain solid, allowing it to raise prices and absorb the impact of high costs.

-- Sony Corp T> Sony said on Wednesday it will cooperate with U.S. e-learning software provider Blackboard Inc in a FeliCa non-contact card business, in a bid to repeat its Asian success in the United States.

-- NEC Corp T> NEC raised its outlook for the six months ended Sept. 30 on Wednesday to show a smaller net loss on lower costs to make cellphones and microchips, but stuck to its full-year forecast.

REUTERS MP AS0504 .43 billion) for Australian dairy and fruit juice producer National Foods, the Australian Financial Review reported on Thursday.

-- Toyota Motor Corp T> Toyota, the world's biggest and most profitable automaker, posted a 2.7 percent rise in quarterly operating profit on Wednesday thanks to a weaker yen, cost cuts and stronger sales, and raised its full-year forecasts.

-- Autobacs Seven Co Ltd OS> British fund Silchester International Investors has filed for a court injunction to block a 8 million convertible bond issue by Japanese auto parts and accessories retailer Autobacs.

-- Nippon Mining&Metals T>Pan Pacific Copper Co Ltd, Japan's top copper smelter, said on Wednesday it will spend million on a stake in a copper mining project in Peru and a further 0 million to build a production facility there.

Pan Pacific Copper is a joint venture between Nippon Mining&Metals and Mitsui Mining and Smelting Co. Ltd.

-- Citizen Holdings Co Ltd T> Japanese watch maker Citizen revised up its first-half operating profit by 57.1 percent on brisk sales of its radio-controlled watches and a weak yen.

Citizen, which kept its full-year outlook, now expects to post a group operating profit of 12.1 billion yen (7.8 million) in April-September, up from its previous forecast of 7.7 billion yen, thanks to a focus on high-end radio-synchronised timepieces with higher margins, it said in a release on Wednesday.

-- Nippon Steel Corp T> An executive at Nippon STeel said on Wednesday the company expects its earnings to continue to grow at least for the next few years as demand for automotive sheet steel will remain solid, allowing it to raise prices and absorb the impact of high costs.

-- Sony Corp T> Sony said on Wednesday it will cooperate with U.S. e-learning software provider Blackboard Inc in a FeliCa non-contact card business, in a bid to repeat its Asian success in the United States.

-- NEC Corp T> NEC raised its outlook for the six months ended Sept. 30 on Wednesday to show a smaller net loss on lower costs to make cellphones and microchips, but stuck to its full-year forecast.

REUTERS MP AS0504

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