Nikkei to recover from a three-week closing low

Tokyo, Feb 8: The Nikkei share average is likely to recover from a three-week closing low on Thursday, as investors return to technology stocks and other shares that look undervalued after the recent sell-off.

Gains are likely to be limited, however, as market participants continue to await earnings results from corporate Japan and the outcome of this weekend's Group of Seven meeting of financial heads in Germany.

Mazda Motor Corp. and Japan Tobacco are among the companies due to report earnings later in the day.

Shares of Mitsui&Co. Ltd. could be a focus for the market.

Japan's second-biggest trading house plans to participate in a joint venture in Saudi Arabia for the integrated production of petrochemicals, the Nikkei business daily reported on Thursday.

''It would not be strange for shares of technology stocks and auto makers to see some buying at current levels,'' said Hiroichi Nishi, a general manager of equity marketing at Nikko Cordial Securities.

''We are now starting to approach a point where valuations are beginning to look attractive again.'' Nikkei futures pointed to an advance in the market.

Contracts expiring in March finished at 17,370 in Chicago, a rise of 80 points from the close in Osaka The Nikkei is likely to move between 17,250 and 17,450 on Thursday, Nikko's Nishi said.

The benchmark fell 0.66 percent to 17,292.32 on Wednesday, its lowest close in three weeks.

STOCKS TO WATCH

--Chubu Electric Power Co.

Japan's third-largest utility said on Wednesday it would restart a nuclear unit at its Hamaoka plant in western Japan after an unexpected shutdown caused by problems with a turbine made by Hitachi Ltd.

--Seiko Epson Corp.

Seiko Epson said on Wednesday it would make semiconductors for California-based Maxim Integrated Products in an alliance aimed at shoring up its loss-making chip business.

--Chugai Pharmaceutical Co. Ltd.

Chugai, a drug maker half-owned by Switzerland's Roche Holding AG, forecast on Wednesday its profits will fall in 2007, but only factored in a small part of the potential earnings from cancer drugs it hopes will be approved this year.

Chugai also said it would buy back up to 28 billion yen (0 million) worth of its own shares. The maximum 9.5 million shares would account for 1.70 percent of its outstanding shares.

-- Mixi Inc.

The president of Japan's most popular online network site said on Wednesday he would consider capital ties with content providers and advertising agencies to help boost long-term growth.

-- Mitsumi Electric Co.

The electronics parts maker on Wednesday raised its group net profit forecast for this business year by 59 percent on strong sales of Nintendo Co.'s Wii game console.

-- Victor Co. of Japan Ltd. (JVC) JVC said on Wednesday it plans to launch the world's first home-use camcorder that can make recordings at full high-definition quality.

Reuters