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Nikkei seen range-bound, eyes on yen, Toyota

Published 09/29/2009, 07:30 PM
Updated 09/29/2009, 07:33 PM

TOKYO, Sept 30 (Reuters) - Japan's Nikkei average is likely to move narrowly on Wednesday, with some selling pressure likely to come after a surprise drop in U.S. consumer confidence, although a halt in the yen's advance against the dollar may provide support.

Toyota Motor Corp will be in focus after the automaker said it will recall some 3.8 million vehicles because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that killed five people.

"The market may start a bit lower after a slight fall in U.S. stocks, though the dollar/yen is stabilising around 90 yen," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

"Trade will likely be range-bound as a whole, however, with moves seen driven by trade in stocks futures as there are no particular sectors in focus for investors."

Nikkei futures traded in Chicago ended Tuesday at 10,115, almost unchanged from the Osaka close.

The benchmark Nikkei is likely to move between 10,000 and 10,200 on Wednesday, market participants said. It rose 0.9 percent the previous day to end at 10,100.20.

The yen stood around 90.15 yen to the dollar in early Asia trade, after hitting an eight-month high against the greenback at 88.23 yen on Monday.

Many Japanese exporters have set their exchange rate assumptions for the dollar around 90-95 yen for the current fiscal year to March.

On Tuesday, the Standard & Poor's 500 Index shed 0.2 percent as Conference Board's Consumer Confidence Index for September fell, underscoring concerns about personal finances amid the worst job market in 26 years. STOCKS TO WATCH

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-- Toshiba

A source told Reuters on Monday French nuclear reactor maker Areva had accepted initial offers from Toshiba, General Electric and a joint bid from French groups Alstom and Schneider Electric for its transmission and distribution business.

-- Panasonic Corp

Panasonic on Tuesday gained approval from European Union antitrust regulators to acquire rival Sanyo Electric Co Ltd on condition it sheds some units.

-- Nippon Oil Corp, Kyocera Corp

Nippon Oil and Kyocera have agreed to jointly develop next-generation fuel cells for powering homes, with the first units to go on sale in Japan in fiscal 2011, the Nikkei business daily said on Wednesday.

-- Sapporo Holdings Ltd

Japanese brewery Sapporo Holdings Ltd said it would buy a 21.65 percent stake in unlisted beverage maker Pokka from private equity firm Advantage Partners and other investors.

--Izumiya Co

The supermarket operator cut its full-year forecast and said it now expects to post a net loss, hurt by sharp fall in sales and special losses in connection with closure of unprofitable stores.

The company said it expects a 5.3 billion yen net loss for the year ending in February, in a sharp swing from a 1 billion yen profit in the previous estimate. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)

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