Tokyo shares outlook - Higher after Dow hits new record; GDP data in focus

Tokyo shares outlook - Higher after Dow hits new record; GDP data in focus

	Published : Thu, 15 Feb 2007 00:03 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices are expected to open stronger after the Dow industrials struck a new record high

overnight after Federal Reserve chairman Ben Bernanke said the US economy should grow modestly this year despite a slowdown in housing and that he expects inflation will continue to ease.

But all eyes may be on Japan's gross domestic product data for the three months to December which the government will release 10 minutes before the market opens. The Bank of Japan is likely to consider the data at its policy board meeting next week when it is to decide whether to raise interest rates.

Economists forecast real GDP to have grown by 0.9 pct in the December quarter compared to the

previous three months, or at an annualized rate of 3.7 pct. In July-September, the economy expanded by 0.2 pct versus the previous quarter, or an annualized rate of 0.8 pct.

In the US, the Dow Jones Industrial Average closed up 87.01 points or 0.69 pct at 12,741.86, while the Nasdaq was 28.50 points or 1.16 pct higher at 2,488.38.

In Chicago, the Nikkei futures contract settled at 17,955 points, up from 17,780 at the Osaka Securities Exchange yesterday, suggesting a firm start for the market.

On the Tokyo bourse yesterday, the Nikkei 225 Stock Average finished 131.19 points or 0.74 pct higher at 17,752.64, while the TOPIX index of all first-section issues added 9.41 points or 0.54 pct at 1,765.31.

Other data on tap today include the January condominium sales in Tokyo to be released by Real Estate Economic Institute.

On the corporate front, Rakuten will release its earnings for the year ended December, while Oki Electric Industry will report its results for April-December.

Stocks to watch include Daiichi Sankyo after Japan's second-largest drugmaker said after the market closed yesterday that it is aiming for sales of 820 bln yen and operating profit of 157 bln yen in

its pharmaceutical business in the fiscal year ending March 2008 and plans to hit these targets by further integrating its operations

Orient Corp may drop on a report that the consumer lender is likely to incur net loss of more than 200 bln yen for the year ending March 31 because it will refund overpayments to borrowers that were charged rates that exceeded a 15-20 pct lending cap specified in an interest rate law.

Toyota Motor Corp may be active following a report that the automaker is expected to accept labor's request for an average 2.58 mln yen in annual bonuses, a record high.

(1 usd = 120.75 yen)

yasuhiko.seki@xfn.com

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