Tokyo shares outlook - Higher after Wall St rebounds

Tokyo shares outlook - Higher after Wall St rebounds

	Published : Wed, 14 Mar 2007 23:44 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices are expected to open higher, with investors likely heartened by a rebound on Wall Street overnight and a slight pullback in the yen, dealers said.

But gains are expected to be limited due to underlying worries over the depth of financial problems at US subprime lenders and its impact on global financial markets, as well as uncertainty over the prospect of the yen, dealers said.

The Dow Jones Industrial Average closed up 57.44 points or 0.48 pct at 12,133.40, while the Nasdaq composite index added 21.17 points or 0.90 pct, at 2,371.74.

In Chicago, the Nikkei futures contract settled at 16,735 points, up from 16,550 at the Osaka Securities Exchange yesterday, indicating a strong start for the Tokyo market.

On the Tokyo bourse, the Nikkei 225 Stock Average closed down 501.95 points or 2.92 pct at 16,676.89, while the TOPIX index of all issues on the Tokyo Stock Exchange's first section lost 50.49 points or 2.93 pct to 1,674.94.

Ahead in Japan, the Ministry of Finance will release this morning weekly capital flows data for the past week.

The Cabinet office will release its monthly economic report for February later today and the Real Estate Economic Institute will announce its condominium sales in Tokyo and Kansai regions.

Stocks to watch include Nikko Cordial Corp after Citigroup announced overnight that it will launch today a tender offer to acquire a majority stake in the scandal-hit securities house.

Japan's third-largest securities house said separately that it will resume preparations to list subsidiary Nikko Asset Management Co but has not decided on a timetable.

Suzuki Motor Corp may move on a report that the automaker will acquire a combined 10 pct interest in transmission manufacturer Jatco Ltd from Nissan Motor Co and Mitsubishi Motors Corp.

Daimaru Inc and Matsuzakaya Holdings Co Ltd may be in focus after the two department store operators announced they have reached an agreement to consolidate their operations under a holding company in September. The holding firm is expected to have combined sales of some 1.16 trln yen, making it the largest department store group in Japan, surpassing industry leader Takashimaya Co Ltd.

(1 usd = 116.99 yen)

yasuhiko.seki@xfn.com

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