Tokyo stocks seen inching higher on Wall St gain

Written by:
Subscribe to Oneindia News

TOKYO, Sep 26 (Reuters) Japanese stocks are likely to edge higher on Wednesday, buoying exporters such as Advantest Corp, following an overnight rise on Wall Street as hopes of another interest rate cut offset worries about economic growth.

Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC, said Japan's new prime minister's choice of cabinet members is unlikely to have much impact on the market as most of them stayed on from the previous cabinet.

Yasuo Fukuda, a seasoned moderate lawmaker, was chosen as Japan's prime minister on Tuesday, and he then tapped veteran ministers from his predecessor's cabinet to confront a powerful opposition keen to force an election.

''U.S. stocks moved solidly and their trading environment has been regaining composure,'' Takahashi said. ''The Nikkei may try for the 16,500 level. High-tech exporters, especially semiconductors, are likely to recoup some of the losses, following U.S. peers.'' U.S. stocks mostly edged higher on Tuesday as technology outperformed other sectors, with Apple Inc. leading gains on the Nasdaq. The Nasdaq Composite Index gained 0.6 percent to end at 2,683.45.

Nikkei futures traded in Chicago finished the previous session at 16,400, 30 points below the Osaka close, pointing to a slightly lower opening.

Market participants said Tokyo's benchmark Nikkei average will likely move between 16,300 and 16,500 on Wednesday after finishing Tuesday up 0.6 percent at 16,401.73.

In New York on Tuesday, the dollar fell against the yen, trading at 114.69 yen down 0.1 percent on the day.

Other notable stocks may be Toshiba Corp, Canon Inc and Toray Industries Inc The Nikkei business daily said on Wednesday they are among 11 Japanese firms that will work together to develop a diagnostic biochip with applications for the medical, environmental and food industries, to better compete with European and U.S. peers.

STOCKS TO WATCH -- Victor Co of Japan Ltd (JVC) Struggling consumer electronics maker JVC said it aims to cut 1,150 workers or 18 percent of its parent-only work force by mid-October as part of its turnaround effort.

JVC, owned 17 percent by audio equipment maker Kenwood Corp and 13 percent by asset manager Sparx Group, said it would book a special loss of 11 billion yen for the first half due to costs for the early retirement scheme.

-- Hino Motors Ltd Truck maker Hino Motors lifted its half-year profit and revenue forecasts on Tuesday after the market closed on Tuesday, citing a rise in overseas sales and a weaker yen.

The truck-making unit of Toyota Motor Corp now expects group net profit of 11 billion yen instead of 9.5 billion yen and operating profit of 24 billion yen, not 17 billion yen.

-- Yamada Denki Co, Best Denki Co Yamada Denki, Japan's largest electronics retailer, has raised its stake in smaller rival Big Denki to 7.71 percent as of Sept 14, up from 6.47 percent a week earlier, according to a regulatory filing submitted on Tuesday.

The Nikkei business daily reported on Saturday that Yamada Denki plans to raise its stake in Best Denki to 20 percent, making it an equity-method affiliate.

-- Toshiba Corp, Canon Inc Toshiba, Canon and Toray Industries Inc are among 11 Japanese companies that plan to work together to develop a diagnostic biochip with applications for the medical, environmental and food industries, the Nikkei business daily said on Wednesday.

Reuters KK VP0505

Please Wait while comments are loading...