Tokyo stocks seen moving higher following Wall St

Tokyo, Jan 5: Japanese stocks are expected to extend gains on Friday, after hitting an eight-month closing high on Thursday, with technology stocks like Tokyo Electron Ltd. rising after a sharp gain in the Nasdaq, though the advance may be limited ahead of a three-day weekend in Japan.

Investors are also likely to focus on Toshiba Corp. after the Nikkei business daily reported on Friday the company plans to independently develop a boiling-water reactor for nuclear power plants and begin selling it in 2015, marking a shift in its nuclear business strategy.

''Tokyo markets are likely to move solidly following strong growth in U.S. markets, especially in semiconductor and high-tech stocks,'' said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC.

''But once the Nikkei reaches the 17,400 level, trade might slow down ahead of the three-day weekend.'' In Chicago, Nikkei futures expiring in March finished at 17,430, 70 points above their close in Osaka.

The Nikkei is likely to move between 17,300 and 17,450, Takahashi said. The benchmark finished up 0.74 percent at 17,353.67 on Thursday, its highest close since April 21.

Takahashi said investors will likely sell energy stocks following a recent tumble in oil prices.

U.S. crude oil for February delivery fell

Tokyo, Jan 5: Japanese stocks are expected to extend gains on Friday, after hitting an eight-month closing high on Thursday, with technology stocks like Tokyo Electron Ltd. rising after a sharp gain in the Nasdaq, though the advance may be limited ahead of a three-day weekend in Japan.

Investors are also likely to focus on Toshiba Corp. after the Nikkei business daily reported on Friday the company plans to independently develop a boiling-water reactor for nuclear power plants and begin selling it in 2015, marking a shift in its nuclear business strategy.

''Tokyo markets are likely to move solidly following strong growth in U.S. markets, especially in semiconductor and high-tech stocks,'' said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC.

''But once the Nikkei reaches the 17,400 level, trade might slow down ahead of the three-day weekend.'' In Chicago, Nikkei futures expiring in March finished at 17,430, 70 points above their close in Osaka.

The Nikkei is likely to move between 17,300 and 17,450, Takahashi said. The benchmark finished up 0.74 percent at 17,353.67 on Thursday, its highest close since April 21.

Takahashi said investors will likely sell energy stocks following a recent tumble in oil prices.

U.S. crude oil for February delivery fell $2.73, or 4.7 percent, in New York on Thursday to settle at $55.59 a barrel.

Weaker energy prices are often deemed positive for stocks because they reduce costs for companies and consumers, but they drag down shares of energy companies.

U.S. stocks rose as a big drop in oil prices boosted optimism about corporate profits and a brokerage raised its profit forecasts for chip maker Intel Corp.

The Nasdaq Composite Index climbed 1.25 percent to close at 2,453.43. The Dow Jones industrial average gained 0.05 percent to end at 12,480.69.

STOCKS TO WATCH:

Toshiba Corp. - The electronics conglomerate plans to independently develop a boiling-water reactor for nuclear power plants and begin selling it in 2015, marking a shift in its nuclear business strategy, the Nikkei business daily reported on Friday.

Toshiba has been developing boiling-water reactors with General Electric Co. but has now decided to develop them on its own after rival Hitachi Ltd. announced it would integrate its nuclear reactor operations with those of GE, the Nikkei said.

NTT DoCoMo Inc. - Japan's top mobile phone operator said on Thursday it has acquired about a 3 percent stake in television broadcaster Nippon Television Network Corp. (NTV) for 13.3 billion yen to strengthen the two firms' ties.

Japan Airlines Corp. - Asia's biggest airline by revenue plans to introduce first-class seats to its domestic routes later this year to help win customers back from rival All Nippon Airways Co. and return to profitability, Japanse media reported.

Toyota Motor Corp. - Japan's largest automaker said on Thursday it is considering expanding its manufacturing capacity in North America and is reviewing locations.

Kirin Brewery Co. - Kirin will likely post a group operating profit of 118 billion yen for the year ended Dec. 31, up 6 percent from a year earlier and beating its forecast by 1 billion yen, the Nikkei newspaper said on Friday.

Kirin, which vies with Asahi Breweries Ltd. for the title of Japan's top brewery, suffered from weaker-than-expected domestic sales of beer and ''chuhai'' alcoholic drinks, but compensated with cost cuts and strong overseas sales, the newspaper said.

Separately, Kyodo news said on Thursday that Kirin would launch a new mainstay beer brand for the first time in 17 years in a bid to catch up with Asahi. It will unveil the plan for the new beer called ''Kirin the Gold'' next Wednesday, Kyodo said.

Shochiku Co. Ltd. - Trading house Mitsui & Co. has raised its stake in Shochiku, a movie distributor, to about 3 percent from 1 percent, with plans to strengthen their capital and business relationship, the Nikkei newspaper reported on Friday.

In addition to co-producing movies, Mitsui and Shochiku plan to jointly develop content for mobile phones, the paper said.

REUTERS

.73, or 4.7 percent, in New York on Thursday to settle at .59 a barrel.

Weaker energy prices are often deemed positive for stocks because they reduce costs for companies and consumers, but they drag down shares of energy companies.

U.S. stocks rose as a big drop in oil prices boosted optimism about corporate profits and a brokerage raised its profit forecasts for chip maker Intel Corp.

The Nasdaq Composite Index climbed 1.25 percent to close at 2,453.43. The Dow Jones industrial average gained 0.05 percent to end at 12,480.69.

STOCKS TO WATCH:

Toshiba Corp. - The electronics conglomerate plans to independently develop a boiling-water reactor for nuclear power plants and begin selling it in 2015, marking a shift in its nuclear business strategy, the Nikkei business daily reported on Friday.

Toshiba has been developing boiling-water reactors with General Electric Co. but has now decided to develop them on its own after rival Hitachi Ltd. announced it would integrate its nuclear reactor operations with those of GE, the Nikkei said.

NTT DoCoMo Inc. - Japan's top mobile phone operator said on Thursday it has acquired about a 3 percent stake in television broadcaster Nippon Television Network Corp. (NTV) for 13.3 billion yen to strengthen the two firms' ties.

Japan Airlines Corp. - Asia's biggest airline by revenue plans to introduce first-class seats to its domestic routes later this year to help win customers back from rival All Nippon Airways Co. and return to profitability, Japanse media reported.

Toyota Motor Corp. - Japan's largest automaker said on Thursday it is considering expanding its manufacturing capacity in North America and is reviewing locations.

Kirin Brewery Co. - Kirin will likely post a group operating profit of 118 billion yen for the year ended Dec. 31, up 6 percent from a year earlier and beating its forecast by 1 billion yen, the Nikkei newspaper said on Friday.

Kirin, which vies with Asahi Breweries Ltd. for the title of Japan's top brewery, suffered from weaker-than-expected domestic sales of beer and ''chuhai'' alcoholic drinks, but compensated with cost cuts and strong overseas sales, the newspaper said.

Separately, Kyodo news said on Thursday that Kirin would launch a new mainstay beer brand for the first time in 17 years in a bid to catch up with Asahi. It will unveil the plan for the new beer called ''Kirin the Gold'' next Wednesday, Kyodo said.

Shochiku Co. Ltd. - Trading house Mitsui&Co. has raised its stake in Shochiku, a movie distributor, to about 3 percent from 1 percent, with plans to strengthen their capital and business relationship, the Nikkei newspaper reported on Friday.

In addition to co-producing movies, Mitsui and Shochiku plan to jointly develop content for mobile phones, the paper said.

REUTERS