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Nikkei moves to be limited as mkt watches dlr, Fed

Published 06/23/2009, 07:23 PM
Updated 06/23/2009, 07:48 PM
USD/JPY
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TOKYO, June 24 (Reuters) - Japan's Nikkei average is expected have limited movement on Wednesday with support from energy shares lifted by higher oil prices but investors keeping a wary eye on the dollar's moves against the yen.

Investors may focus on Showa Shell Sekiyu after the Nikkei business daily reported that the company, Japan's fifth-biggest oil refiner, plans to work with Saudi Arabian Oil Co to jointly set up small-scale solar power facilities in Saudi Arabia next year and later in emerging countries. But activity is likely to be limited as investors wait for U.S. indicators, such as May new home sales, and the results of a Federal Reserve Open Market Committee meeting.

"Support for the Nikkei is likely to hold around 9,500, with signs that overheating is easing prompting bargain-hunting," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

"But this will depend on how the dollar moves against the yen, and things could change."

The dollar had edged down 0.1 percent against the yen to 95.06 yen in early Asian trade.

Market analysts said the benchmark Nikkei is likely to move between 9,400 and 9,700. It closed at 9,549.61 on Tuesday after falling 2.8 percent.

Nikkei futures traded in Chicago edged up 0.7 percent from the Osaka close, pointing at a higher opening. ----------------------MARKET SNAPSHOT @ 2246 GMT ------------

LAST PCT CHG NET CHG S&P 500 895.1 0.23% 2.060 USD/JPY 95.04 -0.19% -0.180 10-YR US TSY YLD 3.6247 -- 0.000 SPOT GOLD 925.5 0.04% 0.350 US CRUDE 68.53 -1.03% -0.710 DOW JONES 8322.91 -0.19% -16.10 ------------------------------------------------------------- > S&P gains on bargain hunting, but Boeing hits Dow > Dollar pressured ahead of Fed meeting outcome > Bonds rise as two-year auction goes down easy > Gold turns higher, above $920/oz as dollar limps > Oil jumps 2 pct on Nigeria disruptions, weaker dollar STOCKS TO WATCH

-- Toray Industries and other Boeing 787 suppliers

Boeing Co on Tuesday postponed the first test flight of its 787 Dreamliner for a fifth time, citing a structural problem. The announcement hit shares of Boeing and most U.S. suppliers for the plane.

In addition to Toray, which makes carbon composite fiber for the Dreamliner, other Japanese suppliers include Mitsubishi Heavy Industries, Kawasaki Heavy Industries and Fuji Heavy Industries.

-- Itochu Corp

Trading company Itochu is set to begin talks to buy convenience store chain am/pm Japan Co, a month after Lawson Inc scrapped its plan to buy the smaller rival, the Nikkei business daily reported.

-- Mizuho Financial Group Inc

Mizuho said on Tuesday it would issue 139.5 billion yen ($1.47 billion) worth of preferred securities on June 30 as part of a planned capital raising.

Japan's second-largest bank said the securities would have a dividend rate of 4.26 percent until June 2014, after which the rate would become variable.

-- Sanyo Electric Co Ltd

Sanyo said on Tuesday it would spend 7.9 billion yen to boost its solar cell output capacity by 26 percent as it tries to keep pace with bigger rivals. -- Japan Steel Works Ltd

Japan Steel Works said its plastic machinery business is emerging from the worst of an industry slump, while solid demand for its core nuclear power parts business may lift profits in the next financial year. ($1=95.16 Yen) (Reporting by Elaine Lies; Editing by Michael Watson)

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