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Nikkei likely to slip, but falls limited

Published 09/24/2009, 07:15 PM
Updated 09/24/2009, 07:18 PM
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TOKYO, Sept 25 (Reuters) - Japan's Nikkei stock average is likely to slip on Friday after fears that authorities might be curbing stimulus efforts too soon sent Wall Street lower, with financials set to fall after Nomura Holdings said it planned a large share offering.

Nomura said it would raise up to $5.6 billion in its second share sale since it bought the European and Asian operations of Lehman Brothers, targeting investments and tighter capital requirements.

Market analysts said the Nikkei was likely to follow Wall Street lower, but that falls would be limited.

"There's definite signs that the world economy is on a recovery path, and Japanese stocks are a bit behind other stock markets at this point," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

"But the Nomura news is likely to weigh on banks and other financials."

World central banks said they would scale back infusions of U.S. dollars into their banking systems, fuelling unease triggered a day earlier when stocks sold off following the U.S. Federal Reserve's decision to slow purchases of mortgage debt -- a key pillar of its efforts to support mortgage lending.

Tokyo market players said the impact of this, if any, would be limited, but it pushed Wall Street lower, with the S&P 500 hit by its worst two-day drop in three weeks as stocks fell across the board.

The benchmark Nikkei is likely to move between 10,300 and 10,550, market players said. It closed up 1.7 percent at 10,544.22 on Thursday, the first day of trade this week after a string of holidays.

In a sign the market is likely to open lower, Nikkei futures traded in Chicago lost 0.6 percent from the Osaka close of 10,460. STOCKS TO WATCH

-- Japan Airlines Corp

JAL pleaded on Thursday for a government bailout, but the new transport minister held back his support on concerns the carrier's cost-cutting plans would not be enough.

-- Nissan Motor Co

Nissan plans to transfer production of its luxury Infiniti brand sport utility vehicle from the United States to a factory in Japan next year, the Nikkei newspaper reported on Friday.

Production of the Infiniti QX56 SUV will be moved to Nissan Shatai Co's Kyushu plant in Fukuoka prefecture from its Canton factory in Mississippi, the Nikkei said.

-- Takashimaya Co

Takashimaya will likely post a group operating profit of around 5 billion yen for the six months ended Aug. 31, down 65 percent from a year earlier and missing its earlier forecast by 1 billion yen, the Nikkei newspaper reported on Friday.

Its department store business in Japan has been sluggish. A cool summer and the H1N1 influenza virus led to a decline in customer traffic, the Nikkei said.

-- Toys R Us-Japan

Toys R Us said on Thursday it will buy all the minority shares it doesn't already own in Toys R Us-Japan for about $84.7 million in a bid to improve the efficiency of its group management.

-- Nintendo Co Ltd

Nintendo will cut the price of its popular Wii video game console by 20 percent, responding to similar cuts by rivals Sony Corp and Microsoft Corp aimed at kick-starting demand.

-- Inpex, other oil-related shares

Oil prices settled more than 4 percent lower at below $66 a barrel on Thursday as weak U.S. home sales data and high crude oil inventories in the top energy consumer stirred doubts about a potential recovery in fuel demand. (Reporting by Elaine Lies; Editing by Chris Gallagher)

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