Tokyo stocks seen opening down on U.S. stocks fall

TOKYO, Mar 7 (Reuters) Tokyo stocks are expected to open lower on Tuesday 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.

STOCKS TO WATCH -- Suzuki Motor Corp.

The auto maker said late on Monday that General Motors Corp.

(GM) would sell 17 percent of its stake in Suzuki on the market, though the two companies will keep their operational alliance.

A weekend media report that GM planned to sell its entire 20 percent stake in Suzuki had hit shares in Suzuki, which finished Monday down 0.4 percent at 2,490 yen.

-- JGC Corp.

Japan's top energy contractor said on Monday it had received an order to build a refining and petrochemical complex for a large petrochemical project in Saudi Arabia. Media reports said the order was worth more than 100 billion yen (0 million) -- Kawasaki Heavy Industries Ltd.

The Nihon Keizai business daily said on Tuesday that the heavy machinery maker is likely to post a group operating profit of nearly 31 billion yen (4 million) for the fiscal year through March 31. The company has projected a profit of 28 billion yen.

REUTERS VJ RAI0530