TOKYO, Dec 17 (Reuters) - Japan's Nikkei average is likely to gain on Wednesday, with investors seen picking up beaten-down stocks, after the U.S. Federal Reserve slashed borrowing costs to a record low, even zero, prompting a rally on Wall Street.
"The market will rebound after large interest rate cuts in the United States sparked a jump in U.S. stocks," said Hiroichi Nishi, general manager at Nikko Cordial Securities.
"The focus now shifts to currency moves and the outcome of the central bank's policy setting meeting on Dec. 18-19."
The Bank of Japan meets on Thursday and Friday to review the country's interest rates.
Nikkei futures traded in Chicago closed at 9,040 on Tuesday, 480 points above their close in Osaka.
Market participants expect the benchmark Nikkei to trade between 8,600 and 9,000 on Wednesday. It fell 1.1 percent the previous day to end at 8,568.02.
In a unanimous vote, the Fed made a larger-than-expected cut to the the benchmark federal funds rate by at least three-quarters of a percentage point to a target range of zero to 0.25 percent from its current 1 percent.
The U.S. dollar tumbled versus the euro and the yen on Tuesday after the Fed's rate cut. In New York, the dollar was down 1.6 percent to 89.06. > Wall St rallies, financials jump on Fed's rate cut > US dollar tumbles after Fed cuts rates to record low > US yields hit record lows after Fed axes rates > Gold jumps above $850 after Fed slashes US rates > Oil falls as economic gloom outweighs OPEC, Fed STOCKS TO WATCH
-- Honda Motor Co
Honda, which has abruptly moved up its year-end news conference by two days, could announce its third profit warning of the year on Wednesday as market conditions worsen.
-- Fuji Heavy Industries Ltd
Fuji Heavy, the maker of Subaru cars, said on Tuesday it would pull out of the world rally championship citing the global economic crisis.
-- KDDI Corp, Tokyo Electric Power Co
KDDI, Japan's No.2 wireless carrier, plans to acquire the cable TV operations of Tokyo Electric Power Co (Tepco) for about 20 billion yen ($222.4 million), the Nikkei financial daily reported.
-- Mitsubishi Corp, Aeon Co
Japan's top trading house Mitsubishi Corp will take a 5 percent stake in Aeon in a deal that the nation's No.2 retailer hopes will cut procurement costs and boost its overseas expansion.
-- Mitsubishi UFJ Financial Group
Citigroup will sell its Japanese trust bank to a unit of Mitsubishi UFJ Financial Group for around $276 million, as the struggling U.S. bank looks to sell assets worldwide.
-- Chugai Pharmaceutical
Chugai and fellow drugmaker Taisho Pharmaceutical Co said on Tuesday they will seek approval in Japan for their osteoporosis drug candidate.
Chugai, majority owned by Roche Holdings AG, and Taisho said Phase III trials for eledecalcitol, a vitamin D derivative, have been positive. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)