Nikkei seen falling, technology shares to lead

Tokyo, June 12 : The Nikkei average is seen falling on Monday, extending losses from its biggest weekly decline in five years, as investors sell shares of Sony Corp. and other technology firms after similar stocks declined in U.S. trade.

Relative weakness in the yen may help limit losses, however.

The yen was at around 114.20 to the dollar in early Tokyo trade, not far off the recent low of 114.72 hit last week.

Chicago-traded Nikkei futures pointed to a decline in stock prices. Nikkei futures contracts expiring in September closed at 14,635, a fall of 165 points from the Osaka finish.

''We will probably see the market fall as far as the closing price of Nikkei futures in Chicago,'' said Yutaka Miura, deputy manager of equity information at Shinko Securities.

''High-tech stocks are likely to be a focus of selling,'' he said, citing weakness in similar U.S. stocks. ''But other exporters are likely to find some support, since the yen is in the 114 range.'' A weaker yen is a boon for Japan's exporters as it increases profits when earnings from abroad are brought home.

The Nikkei may move between 14,600 and 14,850 on Monday, traders said.

It rose 0.81 percent, to 14,750.84 on Friday, but still finished the week down more than 1,000 points, its biggest weekly fall since 2001.

U.S. stocks fell on Friday, with the technology-laced Nasdaq Composite Index dropping 0.48 percent.

STOCKS TO WATCH

McDonald's Holdings Co. (Japan) The fast-food chain said its same-store sales rose 9.2 percent year-on-year in May, reflecting a jump in per-customer spending following price rises implemented in mid-May and the introduction of higher-priced salads.

It was the fourth straight month of growth and the biggest sales rise since March 2005.

-- Fujitsu Ltd.

Fujitsu said on Friday it has no plan at the moment to seek development or production alliances with other microchip makers, despite a growing trend in Japan's semiconductor industry towards joining forces.

Reuters