Nikkei seen falling below 15,000, futures eyed

Tokyo, June 8: The Nikkei average is seen falling below 15,000 for the first time this year on Thursday, due to persistent worries about a slowdown in the U.S. economy, a key Japanese export market, and concerns about selling by foreign investors.

Volatile futures trading ahead of the settlement of June Nikkei futures and options on Friday is also likely to weigh on the index.

The settlement, known as the special quotation or SQ, often prompts volatile trading of index futures and stocks.

''I don't think Tokyo stocks will be able to advance today,'' said Toru Otsuka, deputy general manager of investment information at Mizuho Investors Securities.

''The U.S. market just isn't able to stage a rebound at the moment,'' he said, referring to nagging concerns about a slowdown in the world's largest economy.

Chicago-traded Nikkei futures edged lower. Nikkei futures contracts expiring in June closed at 15,090, a fall of 10 points from the Osaka finish.

The Nikkei may move between 15,260 and 15,500 on Thursday, traders said. It has not fallen below 15,000 since December 2005.

It fell 1.88 percent on Wednesday to 15,096.01, its lowest close since Nov. 30.

Concerns about selling by foreign investors, and volatility ahead of the SQ were likely to also weigh on the market, Otsuka said.

Foreign investors were one of the main drivers behind the Nikkei's 40-percent rise last year, but have recently shown signs of pulling away from Japanese equities.

U.S. stocks fell on Wednesday, with the Dow industrials closing below 11,000 for the first time in three months, in a sell-off driven by worries about the economy and higher rates.

STOCKS TO WATCH -- Skylark Co.

Shares in Japan's largest restaurant chain operator were suspended after a newspaper report that it is planning Japan's biggest management buyout offer that could be worth more than

Tokyo, June 8: The Nikkei average is seen falling below 15,000 for the first time this year on Thursday, due to persistent worries about a slowdown in the U.S. economy, a key Japanese export market, and concerns about selling by foreign investors.

Volatile futures trading ahead of the settlement of June Nikkei futures and options on Friday is also likely to weigh on the index.

The settlement, known as the special quotation or SQ, often prompts volatile trading of index futures and stocks.

''I don't think Tokyo stocks will be able to advance today,'' said Toru Otsuka, deputy general manager of investment information at Mizuho Investors Securities.

''The U.S. market just isn't able to stage a rebound at the moment,'' he said, referring to nagging concerns about a slowdown in the world's largest economy.

Chicago-traded Nikkei futures edged lower. Nikkei futures contracts expiring in June closed at 15,090, a fall of 10 points from the Osaka finish.

The Nikkei may move between 15,260 and 15,500 on Thursday, traders said. It has not fallen below 15,000 since December 2005.

It fell 1.88 percent on Wednesday to 15,096.01, its lowest close since Nov. 30.

Concerns about selling by foreign investors, and volatility ahead of the SQ were likely to also weigh on the market, Otsuka said.

Foreign investors were one of the main drivers behind the Nikkei's 40-percent rise last year, but have recently shown signs of pulling away from Japanese equities.

U.S. stocks fell on Wednesday, with the Dow industrials closing below 11,000 for the first time in three months, in a sell-off driven by worries about the economy and higher rates.

STOCKS TO WATCH -- Skylark Co.

Shares in Japan's largest restaurant chain operator were suspended after a newspaper report that it is planning Japan's biggest management buyout offer that could be worth more than $2.3 billion.

-- Nintendo Co.

The game software and console maker said on Wednesday it sees little impact on its profit from sales of its new Wii console.

The company also said it plans to boost production of the DS hand-held console series to 2 to 2.2 million units a month from about 1.6 million as of May.

-- Sony Corp.

Sony said on Wednesday it expects to book 17 billion yen ($149.8 million) in profit from its sale of retail businesses in the year to next March.

-- Daiwa Securities Group The brokerage is likely to earn a return on equity of more than 20 percent this business year, beating the 15 percent target laid out in its latest business plan, President Shigeharu Suzuki told Reuters on Wednesday.

Reuters

.3 billion.

-- Nintendo Co.

The game software and console maker said on Wednesday it sees little impact on its profit from sales of its new Wii console.

The company also said it plans to boost production of the DS hand-held console series to 2 to 2.2 million units a month from about 1.6 million as of May.

-- Sony Corp.

Sony said on Wednesday it expects to book 17 billion yen (9.8 million) in profit from its sale of retail businesses in the year to next March.

-- Daiwa Securities Group The brokerage is likely to earn a return on equity of more than 20 percent this business year, beating the 15 percent target laid out in its latest business plan, President Shigeharu Suzuki told Reuters on Wednesday.

Reuters