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)
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