Tokyo stocks seen opening up, eyes on machinery data

TOKYO, Apr 11 (Reuters) Tokyo stocks are seen opening higher on Wednesday with exporters such as Canon Inc. rising on a softer yen against the euro and following gains in U.S. stocks, but investors will likely take direction from machinery orders data due just before the start of trade.

Core machinery orders, a highly volatile figure regarded as a leading gauge of capital spending, are expected to have declined 0.2 percent in February from the previous month, according to a Reuters poll.

That compares with a stronger-than-expected 3.9 percent rise in January.

''Investors are carefully watching machinery data as it can affect the direction of the market,'' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

But he said the opening is expected to be higher following the U.S. market and the currency, though gains may be limited on concerns that the Nikkei has risen too high in recent sessions.

In New York, the euro rose as high as 160.10 yen on the EBS electronic trading system on Tuesday, a record since the currency's launch in 1999.

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

Nikkei futures pointed to a rise in the market. Contracts expiring in June finished at 17,735 in Chicago, a gain of 45 points from the close in Osaka The Nikkei is likely to move between 17,600 and 17,850 on Wednesday, Nishi said.

The benchmark closed down 0.45 percent at 17,664.69 in the previous session, after booking its highest close since Feb. 27 on Monday.

U.S. stocks advanced on Tuesday with the Dow Jones industrial average rising for an eighth straight session, the longest winning streak in four years. The Dow added 0.04 percent to end at 12,573.85.

STOCKS TO WATCH -- Daiei Inc., OMC Card T> Japan's Daiei plans to sell a 31.8 percent stake in credit card unit OMC Card for 70-80 billion yen (8-2 million), and likely bidders include Sumitomo Mitsui Financial Group and Credit Saison, the Nikkei business daily said on Wednesday.

-- Sony Corp. T> Sony said on Tuesday its LCD plant joint venture with South Korea's Samsung Electronics would start production this summer, a few months ahead of schedule.

Using advanced ''eighth-generation'' technology, the joint LCD plant, S-LCD Corp., was previously expected to begin churning out large-size liquid crystal displays (LCDs) in autumn.

-- Elpida Memory Inc. T> Chip maker Elpida Memory Inc. said on Tuesday it expects group net profit to fall short of market expectations for the year ended in March as price declines hurt margins in the January-March quarter.

-- Takashimaya Co. T> Takashimaya, Japan's biggest department store chain, forecast a weaker-than-expected 9 percent rise in profit in 2007/08 on Tuesday after missing its own target last business year as a mild winter hampered its apparel sales.

-- Pentax Corp., Hoya Corp. T> Japanese camera and medical gear maker Pentax decided to scrap a planned merger with Hoya via a share swap, but said it remained open to Hoya's sweetened proposal to take control through a tender bid.

-- Mitsubishi Heavy Industries Ltd. T> Japan's Mitsubishi Heavy said on Tuesday it may make acquisitions or forge alliances to help it make a full-fledged push into the fast-growing European wind power market.

-- Murata Manufacturing Co. Ltd. OS> Japanese electronics components maker Murata said on Tuesday its President Yasutaka Murata would resign and become chairman, handing over the helm to his younger brother Tsuneo Murata.

-- Sumitomo Trust&Banking Co. Ltd. T> Sumitomo Trust, Japan's fifth-biggest bank, said on Tuesday it would buy Life Housing Loan Co., a housing loan unit of Shinsei Bank Ltd., for 25 billion yen (0 million).

-- Nippon Oil Corp. Cosmo Oil Co. T> Nippon Oil and Cosmo Oil have struck an alliance in the fuel cell sector, on top of existing cooperation in distribution, refining and lubricants, the two Japanese refiners said on Tuesday.

Reuters DKS VP0515