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Nikkei to edge up, eyes on energy-linked shares

Published 09/08/2009, 07:29 PM
Updated 09/08/2009, 07:33 PM

TOKYO, Sept 9 (Reuters) - Japan's Nikkei stock average is likely to edge higher on Wednesday, tracking the previous day's gains on Wall Street, with energy-linked shares seen rising after a jump in oil prices.

One stock to watch is information services company CSK Holdings Corp, which said on Tuesday that it would bolster its capital by 52 billion yen ($563 million) via steps such as a debt-for-equity swap with banks.

CSK Holdings also cut its net forecast for the current financial year to a loss of 54 billion yen from a profit of 1.1 billion yen.

"While the market lacks energy, major stock markets around the world are on a rising trend," said Hiroichi Nishi, general manager in the equity division of Nikko Cordial Securities.

The Nikkei may open higher but gains are likely to be limited, he said.

Subdued volume and turnover in recent sessions suggests that upward momentum is lacking, and the yen's recent firmness may hold back shares of exporters, he added.

U.S. stocks advanced on Tuesday on an uptick in corporate deal activity while a weaker dollar led to gains in commodities, lifting shares of oil and mining companies.

The benchmark Nikkei is likely to trade between 10,300 and 10,500, said Nishi at Nikko Cordial Securities.

Nikkei futures traded in Chicago finished at 10,420 little changed from the Osaka close of 10,410.

The Nikkei rose 0.7 percent to 10,393.23 on Tuesday, approaching resistance at the 25-day moving average, which lies near 10,400. The Nikkei has rebounded since hitting a two-week intraday low of 10,143.26 last Friday. STOCKS TO WATCH

-- RYOHIN KEIKAKU

Ryohin Keikaku Co Ltd, which operates Muji clothing and household goods stores, likely posted an operating profit of 7.5 billion yen for the six months ended Aug. 31, down 18 percent from a year earlier and undershooting its forecast for a 12 percent drop to 8 billion yen, the Nikkei business daily said. (Reporting by Masayuki Kitano; Editing by Chris Gallagher)

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