Tokyo stocks may rebound after steep sell-off

TOKYO, Nov 21 (Reuters) Tokyo stocks are likely to rise for the first time in five sessions on Tuesday, with shares of major exporters such as Canon Inc. rebounding from a sell-off that sent the broad TOPIX index to its lowest close in four months a day earlier.

Nikkei futures pointed to a rise in the market. December futures traded in Chicago closed at 15,810, up 90 points from their close in Osaka With the Nikkei having lost some 500 points over the last four sessions, some market participants said the selloff in the benchmark appeared to have gone too far.

''I think there is a feeling that the market has been oversold.

We are likely to see short-covering and some buying back of stocks,'' said Shinji Igarashi, an equity manager in the sales department at Chuo Securities.

''In particular, shares of blue-chip exporters are likely to be in focus,'' he said.

Canon and other stable earners were also hit during Monday's slide. The office equipment giant fell more than 3 percent.

The Nikkei average is likely to move between 15,600 and 15,900 on Tuesday, market participants said.

The average shed 2.27 percent, or 365.79 points, to 15,725.94, on Monday, its lowest since late September. The TOPIX was down 39.60 points at 1,533.94, the lowest close since July 26.

Investors will also be paying attention to earning results from Nippon Sheet Glass Co., NEC Corp., Juki Corp. and Watami Food Service Co. on Tuesday.

STOCKS TO WATCH -- Toyota Motor Corp. T> Toyota said on Monday it has priced its secondary share offering at 6,820 yen apiece, a 2.01 percent discount to the automaker's closing share price the same day.

-- Mizuho Financial Group Inc. T> Japan's second-biggest bank reported a 15.9 percent rise in first-half group net profit, buoyed by comparisons with a year earlier when it booked a heavy loss on its bond portfolio.

-- Mitsubishi UFJ Financial Group Inc. T> Japan's biggest bank reported a 28.7 percent fall in first-half profit on Monday as its mainstay lending business struggled, but it raised its full-year forecast.

-- Asahi Breweries Ltd. T> The beer maker said on Monday it would cancel 10 million of its own shares, or 2.03 percent of those outstanding, on Dec. 1.

-- Rengo Co. Ltd., Nippon Paper Group Inc. and Sumitomo Corp. T> Japanese paper makers Nippon Paper Group and Rengo and trading house Sumitomo Corp. announced a three-way alliance on Monday, the latest realignment move in a crowded industrial sector suffering from low prices.

-- Bridgestone Corp. T> The top Japanese tyre maker on Monday postponed its goal of reaching a 5 percent net profit margin by two years to 2010 as heated competition, high raw materials prices and the need to spend more on its plants took their toll.

REUTERS DKS PM0528