TOKYO, Oct 27 (Reuters) - The Nikkei average is expected to slip on Tuesday after U.S. stocks fell amid fears lawmakers may let a federal home buyer tax credit expire, but falls may be limited, with a weaker yen supporting shares of exporters.
Hitachi Ltd may draw attention after the electronics conglomerate reduced its annual net loss forecast by 15 percent, bringing it nearer market expectations, with the firm citing a recovery in emerging markets, government spending and cost cuts.
"The market will likely dip after U.S. stocks extended their decline and then be mixed," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"The market is still a bit overheated and lacks strength, but the weaker yen will likely help cap big falls."
Nikkei futures traded in Chicago finished at 10,260.00 on Monday, down 1 percent from the Osaka close, pointing to a lower start.
The benchmark Nikkei is likely to move between 10,250 and 10,450 on Tuesday, market players said. It climbed 0.8 percent the previous day to 10,362.62, its highest finish in four weeks.
The dollar was around 92.20 yen. Many Japanese exporters have set their currency rate assumptions at 90-95 yen for the year to March.
The S&P 500 Index shed 1.2 percent on Monday. Without the home buyer credit, investors worry that the struggling housing market might lose a crucial incentive that has spurred hopes of stabilisation in recent months.
Japan's corporate earnings season heats up this week, with companies reporting later in the day including Nippon Yusen KK, Honda Motor Co and Canon Inc. ----------------------MARKET SNAPSHOT @ 2300 GMT ------------
LAST PCT CHG NET CHG S&P 500 1066.95 -1.17% -12.650 USD/JPY 92.21 -0% 0.000 10-YR US TSY YLD 3.558 -- 0.000 SPOT GOLD 1036.9 -0.02% -0.200 US CRUDE 78.56 -0.15% -0.120 DOW JONES 9867.96 -1.05% -104.22 ------------------------------------------------------------- > Wall St sinks on home builder fears, financials > US dollar rallies as Wall Street, commodities drop > Bonds retreat into record dose of issuance > Gold hits 2-week low, under $1,040 as dollar jumps > Oil falls below $79 with equities as dollar firms STOCKS TO WATCH
-- Nintendo Co
Nintendo plans to launch a new version of its DSi hand-held videogame player with a larger screen in Japan as early this year, the Nikkei business daily reported on Tuesday.
-- Kirin Holdings
Kirin said it would end production at two beer factories in Japan next year, as it prepares for a planned merger with unlisted Suntory Holdings to create one of the world's largest food and beverage firms.
-- Nippon Yusen
Nippon Yusen plans to halve its container ship fleet by the year ending March 2014 to cut costs, and will scrap, sell or return 60 leased vessels of the 120 container vessels it operates, the Nikkei business daily said. (Reporting by Aiko Hayashi; Editing by Michael Watson)