Nikkei seen falling after U.S. stocks decline

Tokyo, June 13 : The Nikkei average is seen falling on Tuesday after U.S. stocks fell amid worries about rising interest rates and slower economic growth before key U.S. inflation data due later this week.

Losses may be limited however by bargain hunting and a weaker yen, analysts said.

''As long as U.S. stocks are on the decline, foreigners will remain net sellers of Japanese shares,'' said Hiroichi Nishi, general manager at Nikko Cordial Securities' equity marketing.

''The market here may open with selling and test its recent low. But I think bargain-hunting will keep the losses from expanding too far,'' he said.

The U.S. Labor Department releases its Producer Price Index for May on Tuesday, followed by the Consumer Price Index on Wednesday. The data will be carefully watched as they are some of the last figures due before the Federal Reserve's June 28-29 policy meeting.

Chicago-traded Nikkei futures pointed to a decline in stock prices. Nikkei futures contracts expiring in September closed at 14,595, a fall of 215 points from the Osaka finish.

The Nikkei average may move between 14,550 and 14,850 on Tuesday, traders said. It rose 0.56 percent to 14,833.01 on Monday.

The Nikkei hit a seven-month intraday low of 14,389.31 on Friday last week.

The yen was at around 114.40 to the dollar in early Tokyo trade, not far off the recent low of 114.72 hit last week. A weaker yen is a boon for Japan's exporters as it increases profits when earnings from abroad are brought home.

The U.S. tech-laden Nasdaq index suffered its seventh straight day of losses and hit its lowest close since October.

The Dow Jones fell to its lowest close since February.

STOCKS TO WATCH -- Dr Ci: Labo Co. Ltd.

The cosmetics company said on Monday that its quarterly group net profit grew 209.4 percent to 61 million yen. Operating profit rose 218 percent to 185 million yen for the three months to April.

-- Dynacity Corp.

Troubled Internet firm Livedoor Co. is in talks to sell its group interest in condominium developer Dynacity to communications firm Invoice Inc., the Nihon Keizai business daily said on Tuesday.

-- Japan Tobacco Inc The world's third-largest cigarette group said on Monday tobacco acquisitions are not on its agenda, though its chief executive designate comes from its fast-growing international business.

Reuters