Tokyo stocks seen lower on chip firms, BOJ eyed

Tokyo, Mar 8: Tokyo stocks are expected to fall on Wednesday (Mar 8, 2006), with shares in chip-related firms such as Tokyo Electron Ltd. declining after a profit forecast from Texas Instruments Inc. disappointed investors and helped send U.S. tech stocks lower.

Caution is also likely to weigh heavily on the market, as investors await the outcome of a possibly pivotal meeting of the Bank of Japan's policy board. The two-day meeting, which begins on Wednesday, could result in an end to the central bank's unprecedented super-easy monetary policy.

''Basically, I think the desire to wait and see is very strong right now. That being said, U.S. stocks, especially the Nasdaq index, were weaker ... so the market is likely to move lower,'' said Yutaka Miura, deputy manager of equity information at Shinko Securities.

Traders expect the Nikkei to move between 15,550 and 15,800 on Wednesday.

On Tuesday it fell for the fourth time in five sessions, dropping 1.1 percent to 15,726.02 as investors sold Softbank Corp. on concerns the Internet firm's finances may be shaken by its possible takeover of a mobile phone operator.

In Chicago, Nikkei futures expiring in March closed at 15,685, a fall of 65 points from the Osaka finish.

Shares in Japanese chip-related firms could fall, Miura said.

Texas Instruments, the top supplier of mobile phone chips, raised the lower end of its profit forecast range but failed to deliver the strong outlook Wall Street had wanted, helping to send the Nasdaq Composite Index down for a fourth consecutive session.

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

-- Pioneer Corp.

The electronics maker expects operating profit in its core car electronics division to jump by at least 29 percent in the next business year from April, helped by growing sales to new customer Ford Motor Co., Pioneer's new president told Reuters in an interview on Tuesday.

-- Advantest Corp.

The world's largest maker of microchip testers on Tuesday raised its dividend forecast for this business year by 40 percent to reflect its robust earnings performance.

-- Konami Corp.

The Japanese game software firm said it will buy about 20 percent of leisure group Resort Solution Co. Ltd. from Nomura Principal Finance (NPF).

-- Takashimaya Co.

Japan's biggest department store operator said it would raise up to 28.6 billion yen through a new share issue to help pay for upgrades and expansions of its stores.

-- Fuji Photo Film Co.

The world's second-biggest maker of camera film said it would issue a total of 200 billion yen in euroyen convertible bonds to secure funds to boost its flat panel and chip production facilities.

REUTERS