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(AFX UK Focus)
2008-11-12 23:49
Nikkei set to slide, concern about economy grows |
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TOKYO, Nov 13 (Reuters) - Japan's Nikkei average will fall on Thursday amid growing worries about the U.S. economy after the government backed away from using its $700 billion bailout to buy up bad mortgages, while a strong yen may hit exporters. One stock to watch will be Mizuho Financial Group Inc after the Nikkei business daily said on Thursday the company is considering issuing preferred subscription securities to Japanese insurance companies this year as a way to increase its capital by around 300 billion yen. U.S. Treasury Secretary Henry Paulson said the Treasury's focus now would be on shoring up financial institutions with direct investments, adding to uncertainty about how the government plans to revive bank lending and underscoring the extent of problems in the U.S. economy. "When risk aversion really starts to rise, you get a vicious cycle of falling stocks, low oil prices and a higher yen, all of them feeding into each other," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities. More gloomy U.S. earnings news, including a dismal forecast from electronics chain Best Buy and a warning from tech bellwether Intel Corp that its fourth-quarter earnings will be weaker than expected, helped push the Nasdaq to its lowest close in five years. Tokyo shares are expected to be weak across the board, with even defensive shares that did well earlier this week falling on profit-taking. The Nikkei is expected to range from 8,000 to 8,500 after closing at 8,695.51 on Wednesday. Nikkei futures traded in Chicago closed at 8,165 compared to the Osaka close of 8,740. ----------------------MARKET SNAPSHOT @ 2249 GMT ------------ INSTRUMENT LAST PCT CHG NET CHG
------------------------------------------------------------- > US STOCKS-Wall St slumps on deepening economic anxiety > Yen rallies as stocks sell off; pound tumbles > Bonds rise as stocks skid, 1-mo bill rate near zero > Gold tumbles as investors shun risky assets > Oil down 5 pct as forecasters slash demand outlook STOCKS TO WATCH -- Mizuho Financial Group Inc Mizuho is considering issuing preferred subscription securities to Japanese insurance companies this year as a way to increase its capital by around 300 billion yen, the Nikkei reported. -- Aozora Bank Aozora Bank may become the first domestic bank to project a net loss for the current business year ending next March, the Nikkei business daily said on Thursday. The bank, which on Sept. 30 forecast a consolidated net profit of 15 billion yen, is now believed to be considering revising the forecast to a net loss in the tens of billions of yen, the paper added. -- Asahi Glass, Nippon Sheet Glass The European Commission imposed its highest ever cartel penalty on Wednesday, fining a group of companies including Asahi Glass and Nippon Sheet Glass more than 1.3 billion euros for what it called market distortion. Pilkington -- a UK unit of Nippon Sheet Glass -- will be fined 370 million euros, Asahi 113.5 million and Belgium's Soliver 4.396 million for "discussing target prices, market sharing and customer allocation", the Commission said. -- Panasonic Corp Panasonic's flat panel subsidiary, IPS Alpha Technology Ltd, said on Wednesday it plans to start LCD module production in Malaysia in February, taking aim at growing LCD TV demand in emerging markets. -- Dentsu Inc Dentsu, Japan's largest advertising company, cut its annual profit outlook by 20 percent and said it would buy a U.S. ad agency as it seeks growth outside the stagnant and mature domestic market. -- Shinsei Bank Shinsei posted a wider net loss for the second quarter, replaced its chief executive and said it may need to raise capital as the economic dowturn continues to batter the midsize Japanese bank. -- NTT DoCoMo Inc
NTT DoCoMo Inc said on Wednesday it will pay $2.7 billion for
a 26 percent stake in Indian telecom Tata Teleservices , giving Japan's top mobile operator a foothold in the
world's fastest-growing major mobile market.
(Reporting by Elaine Lies; Editing by Hugh Lawson)
((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters
Messaging:elaine.lies.reuters.com@reuters.net))
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