Nikkei seen weaker, Internet stocks in focus

TOKYO, Sep 20 (Reuters) The Nikkei average is expected to open lower on Wednesday as Internet stocks come under pressure after Yahoo Inc. of the United States warned weaker advertising revenue would hurt its third quarter.

Analysts said any falls would be limited with many investors likely to stick to the sidelines before seeing Wall Street's reaction to a rate decision by the U.S. Federal Reserve later in the day. The U.S. market is a key destination of Japanese goods.

''A fall in Yahoo shares stokes worries about a slowdown of the U.S. economy. That also puts downward pressure on shares of venture companies here,'' said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC's equity planning and administration department.

''The market doesn't look strong, but within the recent range, I think,'' he said.

He also said a military coup in Thailand will likely have a limited impact on the Tokyo market although developments will be carefully watched.

Market analysts said the Nikkei would likely move between 15,700 and 15,900 after rising 0.05 percent to 15,874.28 on Tuesday.

Nikkei futures traded in Chicago suggested a lower opening.

Chicago's Nikkei December futures closed at 15,755 on Tuesday, down 55 points from the Osaka finish.

The ruling Liberal Democratic Party's presidential election on Wednesday is expected to have a neutral impact on the Tokyo market, analysts said. Government spokesman Shinzo Abe is widely expected to win the election to become Japan's new prime minister later this month.

''I don't see any big impact from the LDP election as Mr Abe is to win as expected,'' said Yutaka Miura, deputy manager at Shinko Securities' equity information department.

REUTERS DKS BST0610