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Nikkei seen down for 3rd day, foreigner moves eyed

Written by: Staff
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TOKYO, June 7 (Reuters) The Nikkei average is expected to decline for the third straight session on Wednesday, with technology shares losing ground after concerns about further interest rate rises again drove similar U.S. stocks lower.

Investors will also be watching orders data from foreign brokerages before the start of trade. Pre-trade sell orders from foreign houses have outnumbered buy orders for the previous nine sessions, underscoring concern that foreign investors may be pulling away from Japanese equities.

''Right now we're in a tough place, I don't see technology stocks being bought after the weakness of U.S. techs,'' said Shinji Igarashi, equity manager of sales at Chuo Securities.

''The main concern right now is the fact that foreign investors are continuing to sell Japanese stocks,'' he added.

Foreign investors were one of the main drivers behind the Nikkei's 40-percent rise last year.

Chicago-traded Nikkei futures were little changed. Nikkei future contracts expiring in June closed at 15,355, a fall of 5 points from the Osaka finish.

The Nikkei may move between 15,260 and 15,500 on Wednesday, traders said.

It fell 1.81 percent on Tuesday to 15,384.86, its lowest close in more than four months.

U.S. stocks fell on Tuesday as investors grappled with the prospect of more interest rate increases, with the technology-laced Nasdaq Composite Index falling 0.32 percent.

STOCKS TO WATCH -- Pioneer Corp.

The struggling Japanese electronics maker said it wants to boost output of plasma display panels by the 2008 Beijing Olympic games and may look for a partner to help turn the loss-making business around.

-- Arrk Corp.

The manufacturer of metal moulds and moulded products told Reuters in an interview it now expects sales to beat its forecast and reach 300 billion yen (TOKYO, June 7 (Reuters) The Nikkei average is expected to decline for the third straight session on Wednesday, with technology shares losing ground after concerns about further interest rate rises again drove similar U.S. stocks lower.

Investors will also be watching orders data from foreign brokerages before the start of trade. Pre-trade sell orders from foreign houses have outnumbered buy orders for the previous nine sessions, underscoring concern that foreign investors may be pulling away from Japanese equities.

''Right now we're in a tough place, I don't see technology stocks being bought after the weakness of U.S. techs,'' said Shinji Igarashi, equity manager of sales at Chuo Securities.

''The main concern right now is the fact that foreign investors are continuing to sell Japanese stocks,'' he added.

Foreign investors were one of the main drivers behind the Nikkei's 40-percent rise last year.

Chicago-traded Nikkei futures were little changed. Nikkei future contracts expiring in June closed at 15,355, a fall of 5 points from the Osaka finish.

The Nikkei may move between 15,260 and 15,500 on Wednesday, traders said.

It fell 1.81 percent on Tuesday to 15,384.86, its lowest close in more than four months.

U.S. stocks fell on Tuesday as investors grappled with the prospect of more interest rate increases, with the technology-laced Nasdaq Composite Index falling 0.32 percent.

STOCKS TO WATCH -- Pioneer Corp.

The struggling Japanese electronics maker said it wants to boost output of plasma display panels by the 2008 Beijing Olympic games and may look for a partner to help turn the loss-making business around.

-- Arrk Corp.

The manufacturer of metal moulds and moulded products told Reuters in an interview it now expects sales to beat its forecast and reach 300 billion yen ($2.7 billion) in the business year to next March.

-- Sony Corp.

The company on Tuesday took the wraps off its first digital SLR -- a high-end camera that uses interchangeable lenses -- aiming to take on Canon Inc. and Nikon Corp. in the fastest-growing and most lucrative segment of the camera market.

Reutes SK VP0510.7 billion) in the business year to next March.

-- Sony Corp.

The company on Tuesday took the wraps off its first digital SLR -- a high-end camera that uses interchangeable lenses -- aiming to take on Canon Inc. and Nikon Corp. in the fastest-growing and most lucrative segment of the camera market.

Reutes SK VP0510

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