Nikkei seen opening lower on profit-taking, yen

Tokyo, Feb 16: The Nikkei average is seen opening lower on Friday, retreating from a five-session rising streak, as investors will likely lock in profits in recent gainers such as Fast Retailing Co. Ltd. and on worries about a stronger yen.

Another point of focus in the market will likely be Sapporo Holings Ltd. after activist hedge fund Steel Partners said on Thursday it is considering a tender offer for Sapporo Holdings ahead of a board meeting to discuss the Japanese beer maker's anti-takeover measures.

The Yomiuri newspaper reported that Asahi Breweries Ltd. has proposed a business integration with Sapporo.

''The Tokyo markets are likely to take a breather after the Nikkei rose for five straight sessions and as the yen is getting stronger,'' said Tsuyoshi Nomaguchi, a strategist in Japanese equity research at Daiwa Securities.

''Ahead of market holidays in the United States and China, overall Asian stocks will also likely take a break.'' The U.S. markets will be closed on Monday for President's Day, and the market in China will be closed throughout next week for the Chinese New Year holiday.

By late afternoon in New York on Thursday, the dollar had dropped 1.25 percent from late Wednesday to 119.20 yen hauled down three yen from the four-year high hit late last month.

Nikkei futures gave little sense of direction for Friday's trade, though. Contracts expiring in March finished at 17,885 in Chicago, a decline of just five points from the close in Osaka.

The Nikkei is likely to move between 17,800 and 17,950 on Thursday, Nomaguchi said.

The benchmark booked its highest close since early May 2000 on Thursday at 17,897.23, just 0.6 percent below the psychologically important 18,000 mark.

The broader TOPIX index rose 0.65 percent to 1,776.71, its highest close since April 2006.

U.S. stocks rose for a third day and the Dow Jones industrial average closed at a record on Thursday, helped by a share-buyback plan from Caterpillar Inc. and a sizable aircraft order for Boeing Co.

Federal Reserve Chairman Ben Bernanke, in his second day of congressional testimony, told lawmakers that U.S. economic growth could be stronger than perceived, which gave investors reason to be cautious because the Fed would be less likely to lower interest rates.

The Dow was up 0.18 percent at 12,765.01.

Stocks to watch
Canon Inc.

The office-equipment giant said on Thursday it would buy back up to 17 million of its own shares, or 1.3 percent of its shares outstanding, for up to 100 billion yen (2.5 million) in its first ever share repurchase.

Sapporo Holdings Ltd.

U.S. activist fund Steel Partners said on Thursday it is seeking a friendly takeover of the Japanese beer maker. The fund has asked for approval from Sapporo's management to raise its stake to 66.6 percent of the company's voting rights.

The Yomiuri newspaper reported on Friday that Asahi Breweries has proposed a business integration with Sapporo.

Mitsubishi UFJ Financial Group.

Japan's financial watchdog on Thursday ordered Mitsubishi UFJ's core commercial banking unit to halt part of its operations due to what it said was lending to an individual with criminal connections.

Himawari Holdings Inc.

The company said on Thursday it will start exclusive talks to sell its commodities wholesale business and dealing units to Societe Generale's Fimat International Banque SA to focus on its Internet broking business.

Oki Electric Industry Co.

The telecom equipment maker said on Thursday it now expects to fall deep into the red this business year on weak sales to carriers and a slowdown in ATM spending by consumer finance companies.

Sumitomo Mitsui Financial Group The bank's goal of more than doubling its dividend ratio in the next two to three years is just an interim target and won't be the end of its efforts to sharply increase investor returns, President Teisuke Kitayama said on Thursday.

Mitsubishi Corp.

A state-backed body will soon sell about 70 billion yen worth of shares in Japanese trading house Mitsubishi Corp. in a secondary offering, the Nikkei business daily reported on Friday.

Reuters