Tokyo stocks seen to be determined by BOJ tankan

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TOKYO, Oct 1 (Reuters) Japanese stocks are likely to take their lead from a Bank of Japan survey of business sentiment due out before the open on Monday, as investors are keen to see how financial market turmoil has affected the country's big firms.

Shares in IHI will likely fall after the heavy machinery and jet engine maker slashed its annual earnings outlook on Friday to forecast an operating loss on problems in its energy plant division and said it may revise that even lower.

''The BOJ tankan survey is a key point for the day's session,'' said Masayoshi Yano, a senior manager of investment information at Tokai Tokyo Securities.

The closely watched quarterly survey of corporate sentiment will be released at 0850 (2350 GMT Sunday), 10 minutes before the start of trade.

It is expected to show big manufacturer sentiment worsened slightly in September, economists said in a Reuters poll, with the yen's rise and the global market turbulence of the last few months taking their toll.

Yano also said investors are likely to shift their focus to company results, with the earnings season kicking off this month.

''Many forecast revisions are expected to be announced, and investors are likely to pick up companies with good results such as shippers,'' he said.

Market participants said the benchmark Nikkei average will likely move between 16,650 and 17,900 on Monday.

Nikkei futures traded in Chicago finished Friday at 16,765, which was 65 points below the Osaka close, pointing to a lower opening.

The Nikkei finished Friday down 0.3 percent at 16,785.69.

U.S. stocks dipped on Friday, with the the Standard&Poor's 500 Index falling 0.3 percent as money managers locked in profits on the last trading day of a strong September.

STOCKS TO WATCH -- Hitachi Ltd Hitachi's hard disk drive business is likely to post a bigger loss than the company forecast for the current business year, hit by sharp price falls earlier this year, the Nikkei business daily said on Saturday.

-- Japan Tobacco Inc Japan Tobacco, the world's third-largest cigarette maker, plans to close a factory in Austria as part of its effort to consolidate output following its acquisition of Gallaher.

-- Mitsubishi UFJ Financial Group Inc (MUFG) MUFG, Japan's largest bank, slashed its parent profit forecast by 44 percent for the six months to Sept. 30, as it was forced to write down the share value of an affiliate.

A spokesman for MUFG said the profit cut would not impact its group earnings outlook, as it does not include the share value of affiliate companies when tabulating group earnings.

-- Advantest Corp and other chip equipment makers Orders for Japanese chip-making equipment fell for the sixth straight month as computer memory makers reined in spending plans, an industry group said on Friday.

Orders fell 8.2 percent in August from the same month last year to 138.44 billion yen, the Semiconductor Equipment Association of Japan said.

-- Mitsui Fudosan Co Mitsui Fudosan said on Friday it would buy a 33.16 percent stake in Imperial Hotel Ltd for 86.2 billion yen, fuelling competition in the Tokyo hotel market.

-- TDK Corp TDK plans to mass-produce next-generation MRAM (magnetoresistive random-access memory) devices as early as next year, the Nikkei business daily reported on Sunday.

MRAM can greatly reduce boot-up times for digital electronics and is seen as a promising technology for laptop computers and mobile phones, the newspaper said.

-- Fuji Electric Holdings Co Fuji Electric said after the close on Friday that it had cut its group operating profit forecast for the year to March 2008 by 23 percent to 36 billion yen, reflecting weaker-than-expected demand for aluminium hard disks and driver chips used in plasma display TVs.

Fuji Electric also announced that it would spend 28 billion yen to boost output of power semiconductors.

-- Taiyo Nippon Sanso Corp Taiyo Nippon Sanso signed an exclusive supply contract with the Dalian municipal government to supply oxygen, nitrogen and other gases to factories in a big industrial park northwest of the Chinese city, the Nikkei business daily reported on Sunday.

-- Monex Beans Holdings Monex Beans plans to start offering M&A advisory services from October, becoming the first online brokerage to enter the market, the Sankei newspaper reported on Monday.

-- Nippon Suisan Kaisha Ltd Seafood processing company Nippon Suisan plans to take a 59 percent stake in French food processor Cite Marine for about 2.6 billion yen, the Nikkei business daily said on Monday.

Reuters MP VP0528

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