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Nikkei may edge up and stall, market seeks direction

Published 06/21/2009, 07:05 PM
Updated 06/21/2009, 07:08 PM
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TOKYO, June 22 (Reuters) - Japan's Nikkei stock average is likely to edge higher on Monday but then stall as the market searches for direction after posting its worst week in three months.

"We're likely to rise a bit and consolidate -- there's no real reason to sell, but there's also very few reasons to buy," said Yutaka Miura, senior technical analyst at Mizuho Securities.

"The Nikkei, as with other stock markets, is waiting for signs about whether the recent rally has ended or whether it will continue."

One stock to watch will be Nissan Motor Co after the Nikkei business daily said it plans produce electric vehicles and their batteries in the United States to tap low-interest loans for green vehicles, an overall investment estimated at 50 billion yen that may rise to 100 billion yen.

Market analysts said the benchmark Nikkei is likely to move between 9,600 to 9,900 yen. It closed at 9,786.26 on Friday.

In a sign the market is likely to start higher, Nikkei futures traded in Chicago closed at 9,890, up 1.2 percent from the Osaka close. > S&P, Nasdaq gain on microsoft; stocks slip for week > Dollar drops as recovery hopes lift risk appetite > Bargain-hunting pushes prices higher > Gold rises, but tamed inflation and dollar in focus > Gasoline sell-off drags crude oil lower STOCKS TO WATCH

-- Toshiba Corp

Toshiba plans to lower the price of its LED bulbs to 5,000 yen, or half of their original price, a move to compete with rival Sharp Corp, the Nikkei business daily said on Monday.

-- Panasonic Corp, Sanyo Electric

Electronics maker Panasonic has made major progress in talks with anti-trust regulators on its planned takeover of Sanyo Electric Co Ltd, and is considering launching a tender offer for the smaller rival as early as next month, Kyodo news agency said.

-- Pioneer Corp

Pioneer Corp said on Friday it will delay issuing new shares to Honda Motor because it is in talks with potential additional financial partners.

-- Kyocera Corp

Kyocera, the world's sixth-biggest maker of solar panels, aims to ride a boost in solar power demand from a revival of state subsidies, even as it waits on a renewable energy recovery in Europe.

-- Hitachi Ltd

Hitachi will introduce a company system that will make its business segments more like subsidiaries, aiming to make it easier to reorganise and streamline group operations, the Nikkei newspaper reported on Sunday.

Hitachi has already announced that two of its six business segments -- automotive equipment and digital consumer electronics -- will be separated into two subsidiaries in July.

The remaining four -- electric power, information and communications, electronics, and urban development systems -- will be turned into in-house companies, the Nikkei said.

-- Nitori Co Ltd

The furniture store chain lifted its full-year profit forecast, buoyed by strong sales as it has successfully lured thrifty consumers with sharp markdowns.

The company said it now expects its operating profit to come at 39 billion yen for the year ending in February 2010, up 8.6 percent from the previous forecast. (Reporting by Elaine Lies; Editing by Edwina Gibbs)

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