Tokyo stocks to move higher on Wall St., softer yen

By Staff
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TOKYO, June 14 (Reuters) Japanese stocks are seen moving higher on Thursday with high-tech exporters such as Canon Inc. up following a rise in stocks in the United States, one of the biggest markets for Japanese goods, and a weaker yen.

But gains could be limited ahead of the outcome of the Bank of Japan's (BOJ) policy meeting that ends on Friday and on lingering concerns about the recent volatile U.S. market, said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.

''The softer yen will surely help, but investors are unlikely to keep buying today as U.S. stocks could be still volatile depending on bond yield moves,'' he said.

''Investors are also paying attention to the BOJ governor's speech tomorrow for signs of when the central bank will raise interest rates, though it is highly unlikely it will this time.'' Nikkei futures point to a rise in share prices. Contracts traded in Chicago finished the previous session at 17,910.00, up 180 points from the close in Osaka The benchmark Nikkei average ended the previous session down 0.16 percent at 17,732.77.

The dollar climbed to a 4-1/2-year high against the yen on Wednesday. In late afternoon trading in New York, the dollar rose 0.9 percent against the yen, changing hands at about 122.73 yen close to the session high of 122.76 yen.

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.

BOJ Governor Toshihiko Fukui has made it clear he won't be dropping any big hints on when the bank will move, as some other central bankers do, but his comments on the economy will be closely scrutinised at 3:30 p.m. (0630 GMT) on Friday when he holds his post-meeting news conference.

The central bank is seen keeping interest rates on hold this week as it awaits more proof that the Japanese economy will keep expanding solidly and consumer prices will rise, enabling it to hike rates in months ahead.

U.S. stocks jumped on Wednesday, as lower bond yields triggered a rebound in utilities and other shares sensitive to interest rates, while signs of strength in the economy reassured investors.

The Dow Jones industrial average rose 1.41 percent to end at 13,482.35.

STOCKS TO WATCH -- Mitsui Fudosan Co. and other property firms The Land Ministry plans to beef up oversight of property valuations amid the burgeoning market for securitised real estate, the Nikkei business daily reported on Thursday.

The paper said the ministry will consider revoking the registrations of appraisers found to have made improper valuations, in addition to requiring disclosure of income projections that serve as the basis for determining market value.

-- Fanuc Ltd.

Fanuc plans to invest up to 30 billion yen (7 million) to build a plant in Japan, the first new plant in 24 years, to manufacture control units for industrial robots to meet soaring demand worldwide, the Nikkei business daily said on Thursday.

The new facility will help increase output capacity to 30,000 units a month from a current 17,000, the paper said.

-- Nippon Steel Corp.

Nippon Steel, Japan's largest steelmaker, said on Wednesday it would spend about million to raise its stake in Godo Steel Ltd. to more than 15 percent, aiming to strengthen their business alliance.

-- Nova Corp.

Japan on Wednesday slapped Nova Corp., the nation's biggest operator of English language schools, with an order to stop signing up long-term students for six months, sending its shares sliding 10 percent.

Reuters DKS VP0525

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