Tokyo stocks seen lower, techs may fall

TOKYO, Mar 28 (Reuters) Tokyo stocks are expected to fall on Wednesday, with shares of technology firms such as Sony Corp.

and other exporters hit by continued concerns about an economic slowdown in the key U.S. market.

Shares of Japan's department stores may continue to be a focus for the market, due to expected industry consolidation.

Isetan Co. Ltd. and Tokyu Department Store Co. said on Tuesday they would form an alliance to strengthen their operations in a sector that has been shrinking for nine years.

Shares of technology firms and other exporters are likely to see some selling, hit in part by concerns about the outlook for their key market, the United States, said Yutaka Miura, a senior technical analyst at Shinko Securities.

''We have yet to see a full resolution of the problems in the U.S. housing market. As such, concerns about the U.S. economy and U.S. stocks remain,'' Miura said.

The Nikkei is likely to move between 17,100 and 17,400 on Wednesday, market participants said.

The benchmark lost 0.90 percent on Tuesday, to 17,365.05.

U.S. stocks fell after a weak consumer confidence report fuelled concerns the housing slowdown may spread to the broader economy.

STOCKS TO WATCH -- So-Net Entertainment Corp. T> Japanese Internet service provider So-Net said on Tuesday it aimed to boost its operating profit margin to 10 percent in the business year to March 2010, up from an estimated 7 percent in the year ending this month.

-- Sanyo Electric Co. Ltd. T> The president of loss-making electronics maker Sanyo, Toshimasa Iue, will step down and be replaced by Vice President Seiichiro Sano, a source close to the matter told Reuters on Tuesday.

REUTERS DKS BST0525