Tokyo stocks seen up but profit-taking may follow

TOKYO, Mar 20 (Reuters) Japanese stocks are expected to open higher on Monday following a rise in Wall Street, but a lack of fresh factors ahead of a national holiday and before the end of the fiscal year this month is likely to prompt profit-taking later.

The Nikkei's strong finish at the end of last week is also likely to provide another reason for profit-taking, said Yutaka Miura, deputy manager of equity information at Shinko Securities.

''While U.S. stocks gained at the end of last week, I think a lot of that is already factored in after Tokyo's rally on Friday.

I expect that will help Japanese stocks open up today ... but by late afternoon I expect profit-taking to weigh and we may see the index head into negative territory.'' The Tokyo market will be closed on Tuesday for a national holiday.

Traders expect the Nikkei share average to move between 16,250 and 16,450 on Monday. It rose 1.51 percent on Friday to 16,339.73, with shares in property firms rebounding after comments by the Bank of Japan governor the previous day helped ease concerns about higher interest rates.

In Chicago, Nikkei futures expiring in June closed at 16,240, unchanged from the Osaka finish.

The Tokyo stock exchange is still shortening overall afternoon trading by 30 minutes to avoid computer system problems. 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 -- Seven&I Holdings Co.

The retailer's operating profit this business year will likely top 300 billion yen ( TOKYO, Mar 20 (Reuters) Japanese stocks are expected to open higher on Monday following a rise in Wall Street, but a lack of fresh factors ahead of a national holiday and before the end of the fiscal year this month is likely to prompt profit-taking later.

The Nikkei's strong finish at the end of last week is also likely to provide another reason for profit-taking, said Yutaka Miura, deputy manager of equity information at Shinko Securities.

''While U.S. stocks gained at the end of last week, I think a lot of that is already factored in after Tokyo's rally on Friday.

I expect that will help Japanese stocks open up today ... but by late afternoon I expect profit-taking to weigh and we may see the index head into negative territory.'' The Tokyo market will be closed on Tuesday for a national holiday.

Traders expect the Nikkei share average to move between 16,250 and 16,450 on Monday. It rose 1.51 percent on Friday to 16,339.73, with shares in property firms rebounding after comments by the Bank of Japan governor the previous day helped ease concerns about higher interest rates.

In Chicago, Nikkei futures expiring in June closed at 16,240, unchanged from the Osaka finish.

The Tokyo stock exchange is still shortening overall afternoon trading by 30 minutes to avoid computer system problems. 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 -- Seven&I Holdings Co.

The retailer's operating profit this business year will likely top 300 billion yen ($2.6 billion), thanks to a planned merger and strong sales at its convenience store chains, the Nihon Keizai business daily said.

-- Toshiba Corp.

The electronics maker said on Friday it expects to pay its highest full-year dividend in five years at 6.5 yen per share for the business year ending this month, up from 5 yen a year ago.

-- Nikko Cordial Corp.

Japan's third-biggest securities brokerage plans to more than quadruple its dividend payout for the financial year ending on March 31, it said on Friday.

-- Tokyo Electron Ltd. and other chip-related firms Orders for Japanese semiconductor-making equipment exceeded sales in February for the fifth straight month, an industry group said on Friday, reflecting chip makers' aggressive capacity expansion drives.

REUTERS VJ RAI0519 .6 billion), thanks to a planned merger and strong sales at its convenience store chains, the Nihon Keizai business daily said.

-- Toshiba Corp.

The electronics maker said on Friday it expects to pay its highest full-year dividend in five years at 6.5 yen per share for the business year ending this month, up from 5 yen a year ago.

-- Nikko Cordial Corp.

Japan's third-biggest securities brokerage plans to more than quadruple its dividend payout for the financial year ending on March 31, it said on Friday.

-- Tokyo Electron Ltd. and other chip-related firms Orders for Japanese semiconductor-making equipment exceeded sales in February for the fifth straight month, an industry group said on Friday, reflecting chip makers' aggressive capacity expansion drives.

REUTERS VJ RAI0519