Tokyo stocks may trim gains after Wall Street dips

TOKYO, Aug 14 (Reuters) Japanese stocks may trim gains on Tuesday, with the previous session's advancers such as Kyocera Corp. falling after an overnight dip in U.S. stocks amid lingering credit concerns.

But investors may pick up shares of infrastructure-related firms Asiawide after a newspaper report that India is planning a range of such projects, said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC.

Manufacturers such as Kawasaki Heavy Industries Ltd. and Komatsu Ltd. could benefit from New Delhi's plans to spend about 38 trillion yen (0 billion) on infrastructure projects over the next five years, the Nikkei business daily said on Tuesday.

''The Nikkei will likely move to cement the downside as U.S.

markets appear to have calmed down a bit, but investors are still concerned,'' he said.

Takahashi said major central bank moves to inject sizable amounts of overnight funds to alleviate a money market squeeze was positive and will likely improve market sentiment, but concerns about the fallout on hedge funds remain.

''The kind of overwhelming sell-off we saw last week is unlikely to take place, unless new negative stories about funds in relation to the credit problems come out again,'' he said.

Nikkei futures traded in Chicago finished the previous session at 16,740.00, 40 points below the Osaka close pointing to a slightly lower opening.

Market participants said the Nikkei would likely trade between 16,700 and 16,900 on Tuesday.

The benchmark finished the previous day up 0.2 percent at 16,800.05, while the broader TOPIX index lost 0.08 percent to 1,632.64, its lowest close since December 2006.

Takahashi also said domestic-demand reliant shares will likely continue to be weak. Those shares include banks and retail firms.

The Dow Jones industrial average slipped 0.02 percent to end at 13,236.53.

STOCKS TO WATCH -- Kawasaki Heavy Kawasaki Heavy may also gain on a Nikkei report that it is in the final stage of talks with India's national rail operator to begin joint production of freight carriages in 2009.

-- KK DaVinci Advisors Property investment firm said group net profit rose 88 percent to 6.07 billion yen for the six months to June thanks to its strong property fund business.

-- Culture Convenience Club Co. (CCC) CCC, which operates the Tsutaya chain of rental CD and video shops, said after the close on Monday that its group net profit fell 47 percent to 1.4 billion yen in the three months to June 30 despite a 25 percent jump in sales to 55 billion yen.

CCC attributed the profit downturn to losses at majority-owned subsidiaries Sumiya Co. and IMJ Corp. as well as increased investment in information technology and higher employee costs.

-- GMO Internet Ltd.

The Internet-related business provider said on Monday it was pulling out of the consumer loan business, and would sell its 91.1 percent stake in unit GMO Loan Credit Holdings to that company's management. GMO said it will receive about 5.3 million yen for its stake in the unit.

The company also said on Monday it expects to fall into the red this year, estimating a net loss of 13 billion yen for the 12 months to December, compared with its previous forecast for a net profit of 2.5 billion yen.

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