Tokyo stocks seen moving lower on stronger yen

Published: Wednesday, April 18, 2007, 8:33 [IST]

TOKYO, Apr 18 (Reuters) Tokyo stocks are seen falling on Wednesday, with technology shares such as Canon Inc. likely to be hurt by a strengthening yen.

''Despite tech earnings results in the United States, investors may find it hard to buy technology stocks due to the yen being a bit stronger,'' said Yutaka Miura, a deputy manager of the equity information department at Shinko Securities.

After the close in the United States, Intel reported quarterly results that were in line with expectations, despite a price war with rival AMD But Internet media company Yahoo Inc. reported a lower quarterly profit that missed Wall Street estimates.

''The Japanese market is not yet fully confident about the U.S. economic outlook as the country has been reporting a mix of strong and weak economic indicators,'' Miura said.

The U.S. Labor Department said on Tuesday the core Consumer Price Index, excluding food and energy, rose at a muted pace last month.

In New York, the dollar fell 0.7 percent to 118.88 yen on Tuesday. The euro dipped 0.4 percent to 161.25 yen A stronger yen weighs on exporters as it cuts the value of their overseas sales when translated back into the Japanese currency.

Nikkei futures pointed to a slight rise in the market.

Contracts expiring in June finished at 17,665 in Chicago, a gain of 55 points from the close in Osaka The Nikkei is likely to move between 17,400 and 17,650 on Wednesday, Miura said.

The benchmark closed down 0.57 percent at 17,527.45.

In the United States, the Dow Jones industrial average rose 0.41 percent to end at 12,773.04.

STOCKS TO WATCH -- Fujifilm Holdings Corp.

Fujifilm sees an 80 percent jump in its group operating profit for the year ending March 2008 on brisk shipments of medical imaging equipment, printing plates and colour copiers, the Nikkei business daily said on Wednesday.

-- Pentax Corp., Hoya Corp.

Pentax has cancelled its extraordinary board meeting that was scheduled for Wednesday, a Pentax executive told Reuters.

Pentax's board had planned to gather before a meeting with Hoya, which is considering making a tender offer bid for Pentax, the executive said.

-- Fujitsu Ltd.

Fujitsu said on Tuesday it likely fell short of its group operating profit forecast for the year ended March by 4 percent due to sluggish sales of optical transmission systems.

Reuters SBA VP0510

 

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