Nikkei seen at highest since May, Toyota may gain

Tokyo, Dec 27: The Nikkei share average is likely to hit its highest since May on Wednesday, as shares of technology firms such as Sony Corp. rise after gains in similar U.S. stocks.

Trade activity is expected to remain slow as many market participants are away for year-end holidays.

Shares of Toyota Motor Corp. may rise following a Nihon Keizai report that its chairman met with the chief executive of Ford Motor Co. as the first step in potential partnership negotiations.

Toyota's American depository receipts rose 70 yen compared with the stock's closing price in Toyko, Reuters data showed.

''After the rise in U.S. stocks, and with investors seeming to have expectations for a strong year-end here, I think we are likely to see a rise today,'' said Yutaka Miura, a deputy manager in the equity information department at Shinko Securities.

Shares of exporters such as technology firms may see some buying, he said.

Nikkei futures pointed to a rise in the market. Futures contracts expiring in March finished at 17,260 in Chicago 80 points above their close in Osaka The Nikkei is likely to move between 17,100 and 17,300 on Wednesday, market participants said.

The benchmark booked its highest close in 7-{ months on Tuesday, climbing 0.45 percent to 17,169.19.

U.S. stocks rallied, with the Nasdaq composite index climbing 0.5 percent to 2,413.51.

STOCKS TO WATCH -- All Nippon Airways, Japan Airlines Corp. T> JAL said on Tuesday it plans to raise its international and domestic fares from April to cover fuel costs that are expected to increase by some 40 billion yen next business year.

Rival ANA also said it would increase its international fares, a week after it announced a domestic fare hike, estimating nearly 45 billion yen more in fuel costs in the year from next April.

-- NEC Electronics Corp., Dai Nippon Printing Co. Ltd. T> The money-losing microchip maker said it would sell its photomask operations to Dai Nippon Printing to focus its resources on its mainstay semiconductor operations.

-- Nikko Cordial Corp. T> Credit ratings agency Standard & Poors's Ratings Services said on Tuesday it had placed Nikko Cordial and other Nikko Cordial group companies on creditwatch with negative implications.

-- Mitsubishi UFJ Financial Group T> Mitsubishi UFJ, Japan's biggest banking group, said on Tuesday it planned to raise some 150 billion yen ($1.3 billion) in preferred-securities issues.

Reuters