Japan stocks seen falling as yen, Nasdaq to weigh

TOKYO, Apr 24 (Reuters) Japanese stocks are seen falling on Monday as a rise in the yen hurts exporters such as Honda Motor Co. Ltd., while falls in U.S. technology shares could drag down their Japanese counterparts.

But a rise in oil, gold and other commodity prices may help resource-related stocks such as Mitsubishi Corp., and strong expectations over upcoming annual earnings reports could triger bargain-hunting on any decline.

''A strong yen is a minus for Japanese stocks. In addition, a slump in the Nasdaq is negative for Japanese stocks, in particular expensive high-tech issues,'' said Yutaka Miura, deputy manager of Shinko Securities' equity information department.

Traders expect the Nikkei average to move between 17,200 and 17,450 on Monday.

On Friday it rose 0.50 percent to 17,403.96 as hopes for strong earnings lifted Sony Corp. and other blue-chip shares.

In Chicago, Nikkei futures expiring in June closed at 17,300, a fall of 120 points from the Osaka finish.

Nissan Motor Co. may be a focus after the Nihon Keizai business daily reported on Monday that the auto maker plans to spend 10-20 billion yen (-173 million) to build an assembly plant in Russia.

Kao Corp., Japan's biggest household products maker, and industrial robot maker Fanuc Ltd. are among several firms to announce annual earnings later in the day.

The dollar slid about 1 percent to three month lows against the yen in early trade on Monday after Group of Seven countries singled out China in a call for more flexibility in exchange rates.

The dollar traded at around 115.75 yen having been quoted as low as 115.35 yen. It fetched around 116.50 yen in late U.S. trade on Friday.

On Friday, the Nasdaq ended down sharply. Analysts raised concerns about the outlook for computer maker Dell Inc., which helped drag down tech shares. The Dow Jones industrial average however reached a six-year high for a second day.

The Tokyo Stock Exchange returns to normal trading hours from Monday, with the afternoon trading session starting at 12:30 p.m.

(0330 GMT), instead of 1 p.m. It finishes at 3 p.m.

Afternoon trading had been shortened by 30 minutes between Jan.

19 and April 21 on concern over possible computer system problems.

STOCKS TO WATCH -- NEC Corp., NEC Electronics Corp.

Electronics conglomerate NEC cut its profit estimate for the business year ended in March after its microchip unit, NEC Electronics, forecast bigger losses due to appraisal losses and potential compensation claims.

-- Matsushita Electric Industrial Co.

The companies sponsoring Blu-ray and HD DVD, competing formats for next-generation DVD technology, are not talking on unification and will not do so in the future, an executive at Matsushita Electric Industrial told Reuters. Matsushita is a leading supporter of Blu-ray.

-- Chugai Pharmaceutical Co. Ltd.

The Japanese unit of Roche Holding AG said it had asked Japan's health ministry for approval to manufacture and sell a colon cancer drug in Japan.

-- Mitsubishi Motors Corp. (MMC) Mitsubishi Motors said on Friday it expects its vehicle sales in China to fall 3.9 percent this calendar year to 124,000 units, and return to 2005 levels of 129,000 units next year.

-- Hankyu Holdings Inc.

Hankyu is to propose forming a joint holding company with rival Hanshin Electric Railway Co. in a deal aimed at helping them compete with West Japan Railway Co., the Nihon Keizai said on Saturday.

-- Asahi Breweries Ltd.

Asahi Breweries, aiming to reduce its dependence on alcoholic beverage operations via diversification, will acquire leading baby food manufacturer Wakodo Co. Ltd. from Daiichi Sankyo Co.

Ltd., the Nihon Keizai business daily said.

Reuters OM DB0502