Tokyo shares outlook - Mixed in cautious trade, focus on Tankan

Tokyo shares outlook - Mixed in cautious trade, focus on Tankan

	Published : Sun, 01 Apr 2007 23:22 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices are expected to open mixed in cautious trading, with all eyes on the Bank of Japan's quarterly Tankan survey on business sentiment due out shortly before the market opens, dealers said.

A poll of 10 brokerage houses and economic research institutes conducted by XFN-Asia show that that the headline Tankan index of business confidence among big manufacturers will come in at plus 24 in the March quarter, down slightly from plus 25 in the three months to December. The estimates ranged from plus 20 to plus 25.

Investors in the equity market are likely to check how the yen will react to the Tankan before making any trading decisions, dealers said.

In Chicago, the Nikkei futures contract settled at 17,270 points, slightly down from 17,310 at the Osaka Securities Exchange Friday.

On the Tokyo bourse Friday, the Nikkei 225 Stock Average finished 23.71 points or 0.14 pct higher at 17,287.65, while the TOPIX index of all first-section issues closed up 2.93 points or 0.17 pct at

1,713.61.

Also ahead, the Japan Automobile Dealers Association will report new car sales for March and for the fiscal year ended last month.

Stocks to watch include Nikon Corp on a report that the company is likely to have posted net profit of 53 bln yen in the last fiscal year ended March, up 83 pct over the previous year, led by brisk sales of digital single-lens reflex cameras as well as semiconductor steppers.

Sumitomo Realty & Development Co Ltd may move on a report that the property developer is likely to have posted an all-time high group operating profit of around 137 bln yen for the year ended last month, an increase of 22 pct, thanks to increased rents amid lower office vacancy rates.

Itochu Corp may be active following a report that the trading house plans to invest a total of about 100 bln yen to develop natural gas in the US over the three years through 2010.

Elpida Memory Inc may be in focus on a report that the chipmaker will start shipping in mid-May a low-power DRAM for cellular phones using a 70-nanometer production process.

Takeda Pharmaceutical Co Ltd may also see brisk trading after the drugmaker announced after the

close of the market Friday three collaboration and licensing deals, as it seeks to enrich its product pipeline due to approaching expiry of patent on such key drugs as Takepron, which has led its profit growth in recent years.

(1 usd = 117.83 yen)

yasuhiko.seki@xfn.com

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