Tokyo stocks seen rising on US data, yen fall

Tokyo, Nov 6: Tokyo stocks are expected to rise on Monday, bouncing off a four-week low, as investors pick up exporters such as Canon Inc. and Honda Motor Co. following signs of strength in the U.S. economy and a drop in the yen.

The dollar strengthened against the yen on Friday after a report showed the U.S. economy created more jobs than previously estimated, though Wall Street dipped on concerns the data could help push the Federal Reserve to resume raising interest rates.

Tsuyoshi Nomaguchi, strategist at Daiwa Securities, said the relatively upbeat economic data would help boost shares of major exporters as the United States is a key market for their goods.

''Japanese stocks should fare relatively well today given the U.S. economy is solid and the weaker yen,'' Nomaguchi said, adding that energy stocks could also draw buyers following a small bounce in the price of oil Nikkei futures traded in Chicago pointed to no real change in the benchmark Nikkei average, which fell 0.15 percent on Thursday to a four-week low of 16,350.02.

Nikkei December futures closed at 16,350 in Chicago, the same level as the Osaka close.

Japanese markets were closed on Friday for the Culture Day holiday.

The Standard&Poor's 500 index fell a total of 0.26 percent on Thursday and Friday.

Nomaguchi said the Nikkei would likely move between 16,350 and 16,500 on Monday.

Major companies to release their earnings results on Monday include Ishikawajima-Harima Heavy Industries Co., Takeda Pharmaceutical Co. Ltd, Daiichi Sankyo Co. Ltd, Promise Co. Ltd., and Keyence Corp.

Nomura Holdings Inc. will be in focus after Japan's top brokerage house announced on Thursday it would buy electronic brokerage Instinet Group Inc. Nomura's ADRs closed Friday in New York at .13, or the equivalent of 2,021 yen, compared with Nomura's last price in Tokyo of 2,025 yen.

Shares of Fast Retailing Co. may come under pressure after it said on Thursday that same-store sales at its Uniqlo casual wear chain fell 4.5 percent in October because mild weather hurt demand for its autumn and winter clothing items.

STOCKS TO WATCH -- Softbank Corp. T> Softbank and News Corp. will team up to create a Japanese version of News Corp.'s popular social networking Web site MySpace, the Nihon Keizai Shimbun reported on Monday.

-- Konica Minolta Holdings Inc The office equipment maker said on Thursday that its first-half profit rose a better-than-expected 17 percent and raised its annual forecast, helped by strong sales of colour copiers and a weaker yen.

-- Mazda Motor Corp. T> The automaker posted a 55 percent surge in quarterly operating profit on Thursday as a weak yen and sales expansion in North America and Europe offset slumping domestic demand, and bumped up its annual forecasts beyond market projections.

-- Hakuhodo DY Holdings Inc.

Japan's second-largest advertising firm revised down its half-year and full-year profit forecasts on Thursday, citing a weaker-than-expected advertising market. It now expects a group net profit of 12 billion yen (1.7 million) for the year to March 2007, compared with its previous estimate of 12.8 billion yen.

-- Takeda Pharmaceutical Japan's largest drug maker on Thursday dropped development of a drug for nerve disorders caused by diabetes but also said it would tie up with U.S. biotech firm Xoma to develop monoclonal antibodies.

-- Marui Co. T> The department store operator said on Thursday it would fall short of its first-half net profit estimate by 69 percent due to sluggish sales and reserves against lawsuits by borrowers in its consumer finance business.

-- Nippon Steel Corp.

Japan's top steelmaker is planning to buy a stake of under two percent in Brazil's largest steelmaker, Usinas Siderurgicas de Minas Gerais SA (Usiminas, a source close to the deal said on Sunday.

-- Toyota Motor Corp.

Japan's top automaker's operating profit will hit 2.2 trillion yen for the business year to March 2007, up 17 percent year-on-year and beating its prior forecast of 1.9 trillion yen, the Nihon Keizai said on Saturday.

-- Fujitsu Ltd. T> Nifty Corp., an Internet service provider wholly owned by Fujitsu, said on Thursday it would list on the Tokyo Stock Exchange on Dec. 7 via a public offering worth 8 million.

Fujitsu plans to unload 41,700 shares in the unit.

Reuters