Nikkei likely to edge up, tech shares strong

TOKYO, Jan 7 (Reuters) - Japan's Nikkei average is likely to edge higher on Wednesday, buoyed by expectations for a U.S. economic stimulus package, with Kyocera Corp and other techs expected to remain in favour after gains by their U.S. peers.

Regional banks are expected to be in focus after the Mainichi newspaper reported that the government had begun looking at injecting public funds into more than 40 regional banks.

"The yen is slightly weaker and this will support exporters, but things could change depending on currency moves," said Yumi Nishimura, deputy general manager of the investment advisory section at Daiwa Securities SMBC.

"Economic indicators are poor, showing that the real economy isn't in good shape, but expectations of a U.S. package will keep the market supported."

Tech shares led Wall Street higher on Tuesday on increasing hopes for a U.S. government stimulus package as investors bet the sector would be a beneficiary of U.S. President-elect Barack Obama's proposed economic plan.

The chances of a stimulus package appeared higher after the release of minutes from a Federal Reserve meeting in December in which the Fed warned of uncomfortably low levels of inflation and said the economy would be weak for some time.

Other market players noted that the Nikkei has now risen for six trading days and that it will have to fend off selling by investors seeking to lock in profits, with tech shares especially likely to dip before rising again.

The benchmark Nikkei is likely to move between 8,980-9,250. It finished Tuesday trade at 9,080.84, its highest close in nearly two months.

Nikkei futures traded in Chicago closed at 9,245 compared to the Osaka close of 9,070. > Wall St rises on stimulus plan hopes; tech leads > Dollar rallies broadly, euro falls as data weighs > TIPS deman hints at inflation fear, market flat > Gold ends higher, bounces off 2-week low > Oil dips below $49 on weak U.S. outlook STOCKS TO WATCH

-- Honda Motor Co

Honda has decided to delay the launch of a car plant in Argentina by six months or more from the originally scheduled second half of this year, the Nikkei financial daily reported.

-- JFE Holdings Inc.

JFE Steel Co President Hajime Bada said on Tuesday the company wants prices of iron ore and coking coal for term supply in 2009/10 business year to fall to at least 2007/08 levels due to a precipitous decline in steel demand.

JFE Steel, the world's third biggest steel maker in terms of output, is the core unit of JFE Holdings Inc.

-- NEC Corp

NEC said on Tuesday it was sitting on a 79.6 billion yen ($855 million) net paper loss on its securities holdings as of the end of last year, as the global financial crisis and economic downturn weigh on stock prices.

An NEC spokesman said that the company had not yet decided whether it would book a special loss on these holdings and that it is unclear how the paper loss would affect its earnings.

(Reporting by Elaine Lies; Editing by Edwina Gibbs)