Tokyo tech stocks seen advancing, China in focus

Tokyo, May 30: Shares of Japanese technology firms such as Sony Corp. are seen advancing on Wednesday, tracking rises by similar U.S. stocks, but broad gains could be limited following China"s move to cool its surging stock market.

In a midnight announcement, China's Ministry of Finance said it has raised a stamp duty on stock trading to 0.3 percent from 0.1 percent.

Investors are concerned the higher duty could prompt a slide in Chinese equities, which would impact markets around the world.

"Markets are very sensitive to China right now," said Shinji Igarashi, equity manager at the sales department of Chuo Securities.

"The concern is about a global sell-off in equities." Investors will also be paying attention to Japanese industrial output data for April, to be released before the start of trade. Production likely rose 0.5 percent, according to a Reuters poll.

Nikkei futures pointed to a rise in share prices. Contracts traded in Chicago finished at 17,705, up 25 points from the close in Osaka The Nikkei is likely to move between 17,500 and 17,750 on Wednesday, market participants said.

The benchmark ended up 0.48 percent at 17,587.59 on Tuesday.

U.S. stocks finished higher, helped by a wave of takeover news involving technology firms.

The Dow Jones industrial average ended up 0.10 percent at 13,521.34. The Nasdaq Composite Index rose 0.58 percent to finish at 2,572.06.

Stocks To Watch -- Japan Airlines Corp.

The airline may sell part of its stake in its wholly owned credit card unit JAL Card Inc. as part of restructuring, the Nikkei business daily said on Wednesday.

-- Shin-Etsu Chemical Co. T> The chemical maker will likely spend 100 billion yen (2 million) to build a PVC materials plant in Texas as it looks to increase overseas production, the Nikkei said on Wednesday.

-- Japan Petroleum Exploration Co. T> The Japanese government will sell 0 million worth of shares in oil and gas developer Japan Petroleum Exploration in June, reducing its stake in the company to around 34 percent from 49.9 percent.

-- Godo Steel Ltd., Kyoei Steel Ltd. T> Godo and Kyoei said on Tuesday they planned to buy stakes of about 3 percent in each other to cement business ties.

-- TDK Corp.

TDK said on Tuesday it planned to buy back four million of its own shares or 3 percent of its outstanding stock before the stock market opens on Wednesday.

-- Sumitomo Metal Industries Ltd. T> The steelmaker said on Tuesday it would buy back up to 110 million of its own shares, or up to 70 billion yen worth, from May 30 to Dec. 20.

-- Murata Manufacturing Co. Ltd. T> Murata expects double-digit growth in China this year and beyond as more users opt for high-end phones, its next president told Reuters on Tuesday.

Murata hopes new demand in emerging markets will bolster prices, which could weaken after rivals expand capacity next next year."Prices and profitability could fall next business year," said Murata said in the interview.

Reuters>