Tokyo stocks seen advancing, Shinko in focus

TOKYO, Jan 10 (Reuters) Japanese stocks are seen advancing on Wednesday, with shares of Toyota Motor Corp. and other exporters gaining after the yen fell against the dollar, increasing expectations of higher earnings at companies that rely on sales abroad.

Shares of Shinko Securities Co. may be a focus for the market. Brokerages Shinko and Mizuho Securities Co., both affiliated with Mizuho Financial Group Inc., have agreed to merge in January 2008, the Nikkei newspaper reported on Wednesday.

''Shares of exporters are likely to get some help from the weaker yen,'' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

A weaker yen is a boon for companies that make the bulk of their profits abroad as it boosts profits when earnings from abroad are brought home.

The yen was at 119.36 yen to the dollar in early Asian trade after falling some 0.5 percent on Tuesday.

In Chicago, Nikkei futures expiring in March finished at 17,250, 10 points below their close in Osaka The Nikkei is likely to move between 17,150 and 17,400 on Wednesday, market participants said. The benchmark rose 0.9 percent to 17,237.77 on Tuesday.

U.S. tech shares advanced on Tuesday, with the Nasdaq Composite Index rising 0.23 percent to close at 2,443.83.

STOCKS TO WATCH -- Seven&I Holdings Co.

Japan's biggest retail group reported an 11.4 percent rise in profit for the first nine months of its business year on Tuesday thanks to acquisitions and improved profitability at its supermarket unit, and maintained its full-year forecast.

-- Ishikawajima-Harima Heavy Industries Co. Ltd. T> The heavy machinery maker said on Tuesday it planned to issue up to about 8 million worth of new shares to fund investments and repay debt.

-- Casio Computer Co. Ltd. T> Casio said on Monday that Best Buy Co. Inc. was likely to start selling its digital cameras at its U.S. stores soon, following a successful test.

-- Shinko Securities Co. T> Shinko and Mizuho Securities Co., both brokerages affiliated with Mizuho Financial Group Inc., have agreed to merge in January 2008, the Nikkei newspaper reported on Wednesday.

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