TOKYO, Nov 21 (Reuters) - Japan's Nikkei average is expected to fall on Friday as sharp overnight losses in U.S. stocks, a stronger yen and global recession fears are likely to prompt institutional investors to dump risk assets such as equities.
One stock to watch will be Orix Corp. The leasing and financial services company said on Thursday it would issue 150 billion yen ($1.6 billion) worth of convertible bonds, aiming to pay down short-term debt and raise funds for investments.
U.S. stocks plunged on Thursday, as a frantic flight from risk prompted by investors' deepening economic fears drove the benchmark Standard & Poor's 500 index to its lowest level since 1997.
"A rise in the yen is likely to push down shares of exporters, while investors are seen selling financial stocks to cut losses," said Yumi Nishimura, deputy general manager of investment advisory section of Daiwa Securitie SMBC.
Nikkei futures traded in Chicago closed at 7,325 on Thursday, 355 points below their close in Osaka.
Market participants expect the benchmark Nikkei to trade between 7,200 and 7,500 on Friday.
It plunged 6.9 percent to end at 7,703.04 on Thursday. ----------------------MARKET SNAPSHOT @ 2318 GMT ------------
LAST PCT CHG NET CHG S&P 500 752.44 -6.71% -54.140 USD/JPY 94.25 0.69% 0.650 10-YR US TSY YLD 3.0025 -- 0.000 SPOT GOLD 744.8 -0.04% -0.300 US CRUDE 48.73 -1.40% -0.690 DOW JONES 7552.29 -5.56% -444.99 ------------------------------------------------------------- > Wall St sinks, S&P falls to lowest level since 1997 > US dollar sinks vs yen, rises vs euro as stocks swoon > Yields at 50-year lows on stock rout, economy woe > Gold rises on physical buying as stocks tumble > Oil drops 7 percent to 3-1/2-year low below $50 STOCKS TO WATCH
-- Toyota Motor Corp
Toyota is reducing output at a 200,000 vehicles-a-year passenger car factory in Thailand due to weakening sales, a spokeswoman said on Thursday.
-- Nippon Telegraph and Telephone Corp
NTT, Japan's biggest phone company, said on Thursday it plans a 100-for-1 share split on Jan. 4 to eliminate fractional shares before electronic stock certificates are introduced next year.
NTT said stock exchanges in Japan will halt trading in the company's shares Dec. 25-30 and the London Stock Exchange will halt trading in NTT shares Dec. 24-Jan. 4.
-- Orix Corp
Leasing and financial services company Orix Corp said on Thursday it would issue 150 billion yen ($1.60 billion) worth of convertible bonds, aiming to pay down short-term debt and raise funds for investments.
The company said the increase in long-term debt would help bolster its financial base and free up funds for investments, including acquisitions of assets expected to be put on the block by Western banks hurting from the financial crisis.
-- Daiwa House Industry Co
The home builder said on Thursday it is interested in becoming the sponsor for failed property developer Urban Corp.
-- Daiichi Sankyo Co
Drugmaker Daiichi Sankyo could post its first net loss in the year to March because of a 70 percent plunge in the share price of India's Ranbaxy Laboratories, in which it recently acquired a 63.9 percent stake, the Nikkei business daily reported on Friday.
The paper said Daiichi Sankyo may have to book an appraisal loss of around 300 billion yen after Ranbaxy shares fell to less than a third of the 737 rupees per share Daiichi paid, amid a scandal in the United States and a stock market meltdown. ($1=94.02 Yen) (Reporting by Rika Otsuka; Editing by Michael Watson)