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Nikkei seen steady to firmer but gains capped

Published 07/22/2009, 07:43 PM
Updated 07/22/2009, 07:48 PM

TOKYO, July 23 (Reuters) - Japan's Nikkei share average is seen moving steady to firmer on Thursday after a rise in U.S. tech stocks and European shares but gains are seen limited, with investors likely to take profits after the Nikkei's six-day rising streak.

NTT DoCoMo Inc, Japan's biggest mobile phone operator, may be in focus after the Nikkei business daily said operating profit likely fell 16 percent in April-June.

On Wall Street, the Nasdaq rose on Wednesday for the 11th straight day, buoyed by solid profits from Apple Inc and Starbucks Corp, while disappointing bank results and declining energy shares weighed on the broader market.

"While the Japanese stock market is drawing support from the Nasdaq's longest rise in 13 years, investors are finding it hard to chase high-tech shares due to the yen's strength, " said Toshiyuki Kanayama, market analyst at Monex Inc.

"The Nikkei is unlikely to extend its gains to the key 10,000 level today."

The benchmark Nikkei gained 71.14 points to end at 9,723.16 the previous day, its highest close since July 3. Market analysts said the market could be due for correction as the Nikkei has gained 7.4 percent in a six-day run through to Wednesday.

In a sign that shares are likely to rise, Nikkei futures traded in Chicago rose to 9,810 from the Osaka close of 9,730.

Analysts said it was likely to move between 9,600 and 9,850 on Thursday. > Nasdaq up on Apple, Starbucks; eBay jumps late > US dollar hits seven-week low versus basket > Treasuries slide on earnings, supply worries > Gold rises above $950 on economic concerns > Oil falls slightly as US product stocks rise STOCKS TO WATCH

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-- Japan Tobacco Inc

Japan Tobacco said it would buy unlisted Brazilian tobacco leaf supplier Kannenberg & Cia Ltda and Kannenberg, Barker, Hail & Cotton Tabacos Ltda to help it secure a stable supply of tobacco leaves.

-- Isuzu Motors Ltd, Hino Motors Ltd

Isuzu Motors and Hino Motors are expected to post a group operating loss of around 20 billion yen each in the April-June quarter as their truck sales struggle, while the yen's strength weighed on their overseas business, the Nikkei business daily. (Reporting by Rika Otsuka; Editing by Edwina Gibbs )

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