Tokyo shares outlook - Firmer on Wall St rebound, weak yen

Tokyo shares outlook - Firmer on Wall St rebound, weak yen

	Published : Wed, 24 Jan 2007 00:01 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices are expected to open higher, with investors heartened by a rebound on Wall Street overnight in the wake of a sharp advance in oil prices, dealers said.

A barrel of light, sweet crude rose 2.47 usd, or 4.7 pct, to settle at 55.04 usd per barrel on the New York Mercantile Exchange after Energy Secretary Samuel Bodman said the US will double the size of the nation's Strategic Petroleum Reserve, triggering a wave of buy-backs among energy stocks there.

A weak yen is also likely to continue to support the local market, with expectations now rife that Japanese exporters will post better than expected quarterly results for the three months to December and that they may raise year to March forecasts, dealers said.

Ahead in Japan, Yahoo Japan and Monex Beans will release business results for the April-December period.

In the US, the Dow Jones industrial average closed up 56.64 points, or 0.45 pct, at 12,533.80, while the Nasdaq was up 0.34 points, or 0.01 pct, at 2,431.41.

In Chicago, the Nikkei futures contract settled at 17,505 points up from 17,420 at the Osaka Securities Exchange yesterday, suggesting a firm start for the Tokyo market.

On the Tokyo bourse yesterday, the blue-chip Nikkei 225 Stock Average closed down 15.61 points or 0.09 pct at 17,408.57, while the TOPIX index of all issues listed on the Tokyo Stock Exchange's first section ended the session up 0.43 points or 0.02 pct at 1,730.76,

Stocks to watch include Sanyo Electric Credit following a report that GE Capital Corp and Shinsei Bank are both studying the acquisition of Sanyo Electric Credit Co.

The Nikkei reported, without citing sources, that the Goldman Sachs Group Inc, now the largest shareholder of the consumer finance firm with 40 pct, and No. 2 shareholder Sanyo Electric Co, which holds 16 pct, are currently accepting bids from prospective buyers for their holdings and plan select a buyer in March.

Kirin Brewery Co Ltd may rise on a report that the brewer plans to spend 20 bln yen to install infrastructure capable of producing 30 types of beer and beerlike beverages at a plant in Shiga Prefecture.

The Nikkei reported, without citing sources, that the planned investment will boost annual output capacity to 200,000 kiloliters by April 2010, up 54 pct from current levels.

Resona Holdings Inc may move after the banking group said it will buy back about 570 bln yen worth of debt that it owes to the government, in a bid to lighten reliance on the public debt.

As of this month, Resona's repayment obligations consist of public aid received in exchange for 2.53 trln yen in preferred shares and 293.7 bln yen in common stock, in addition to 80 bln yen in subordinated loans.

(1 usd = 121.62 yen)

Yasuhiko.Seki@xfn.com