|
(AFX UK Focus)
2009-02-23 23:36
Nikkei likely to fall after bank woes hit Wall St |
|---|
| Article layout: raw |
|
TOKYO, Feb 24 (Reuters) - Japan's Nikkei average is likely to fall on Tuesday, with banking shares seen hurt after Wall Street slumped to a 12-year low on fears the U.S. government will not be able to stabilise the financial system. Market participants said the benchmark could test the intraday low of 6,994.90 hit on Oct. 28, which was the lowest since 1982, while the broader Topix already booked a 25-year closing low for the second day in a row on Monday. Mitsubishi Motors Corp may be in focus after the head of the Japanese automaker told Reuters it aims to return to the black in the next business year and intends to survive the economic crisis without forming a capital tie-up with a rival. "Financial shares will likely be weak as part of the recent trend, but a softer yen may prompt some short covering in exporters," said Hiroichi Nishi, general manager at Nikko Cordial Securities. "After extending losses, the Nikkei will probably move sideways as a series of technicals now indicate that it has fallen too far and pension funds will likely buy on dips." Nikkei futures traded in Chicago closed at 7,180 on Monday, down 200 points from the Osaka close, pointing to a lower open. Market participants expect the benchmark Nikkei to move between 7,000 and 7,300 on Tuesday, after closing the previous day at 7,376.16, its lowest close since Oct 27. ----------------------MARKET SNAPSHOT @ 2248 GMT ------------ INSTRUMENT LAST PCT CHG NET CHG
------------------------------------------------------------- > Wall St slides to 12-year low as confidence sinks > Dollar gains vs yen as US bank aid cuts safehaven demand > Bonds gain from stocks exodus despite supply > Gold slips after rally, but new highs possible > Oil settles below $39 as stock markets retreat
STOCKS TO WATCH -- Daiichi Sankyo Co Daiichi Sankyo and Eli Lilly & Co said on Monday that they had won European approval for their blood-thinning drug Efient, also known as prasugrel. -- Takashimaya Co Takashimaya plans to open one of China's largest department stores in Shanghai in 2012, aiming to build a presence in the fast-growing market, the Nikkei business daily reported on Tuesday. -- Honda Motor Co Honda said on Monday that Chief Executive Officer Takeo Fukui would step down in June, to be replaced by Senior Managing Director Takanobu Ito in a widely expected move amid a global crisis in the auto industry. Honda also said it currently sees no serious buyer for its Formula One team, a sign that Japan's second-largest automaker may have trouble selling off the team. -- Astellas Pharma Inc Astellas, Japan's second-largest drugmaker, said on Monday it would continue to pursue U.S. biotech firm CV Therapeutics , which has rejected its $1 billion buyout offer. -- Nomura Holdings Nomura, Japan's largest brokerage, announced plans to raise $3.3 billion in its first share sale in 20 years, as costs from its purchase of Lehman Brothers assets force it to replenish its capital. -- Advantest Corp
Advantest, the world's largest maker of chip testers, said it
would announce its annual outlook and restructuring moves on
Wednesday.
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)
((aiko.hayashi@thomsonreuters.com; Reuters Messaging:
aiko.hayashi.reuters.com@reuters.net; +81 3 6441 1802))
(Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. |
| Stocks |
| Article layout: raw |
|