Tokyo stocks seen opening down on US stocks fall

Tokyo, Mar 07: Tokyo stocks are expected to open lower on Tuesday (Mar 07, 2006) after a fall in U.S. shares, as profit-taking hits firms such as Canon Inc., whose shares hit a lifetime high a day earlier.

While demand for stocks with high dividend yields remains strong, investors are likely to be reluctant to make aggressive moves ahead of a Bank of Japan policy-setting meeting starting on Wednesday that could result in an end to the central bank's super-easy monetary policy.

''The market looks set to open weaker after another day of falls on Wall Street,'' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

''But things do not look so bad given the dollar's recovery to and above 117 yen,'' he said.

A fall in the dollar below 116 yen earlier this month after weak U.S. economic data had encouraged investors to sell Honda Motor Co. Ltd. and other major exporters.

In Chicago, Nikkei futures expiring in March closed at 15,810 a loss of 100 points from the Osaka finish.

Traders expect the Nikkei average to move between 15,700 and 15,900 on Tuesday.

On Monday it booked its first rise in four sessions on Monday, gaining 1.52 percent to 15,901.16 as Softbank Corp. advanced after the UK's Vodafone Group Plc said it is in talks to sell its struggling Japanese mobile phone business to the Internet firm.

The Tokyo stock exchange has shortened overall afternoon trading by 30 minutes to avoid any computer system trouble. Trade will begin at 1 p.m. (0400 GMT) instead of the usual 12:30 p.m. and will finish at 3 p.m.

UNI