TOKYO: Japan's Nikkei average is likely to edge lower on Tuesday, Sept 28'' after U.S. stocks slipped, but a media report that the Bank of Japan will discuss further moves to ease monetary policy at its meeting next week may provide support.
The Nikkei business daily said the central bank would consider pumping relatively longer-term funds into the money market to push down interest rates, among other moves.
But market players said trade was likely to be muted, with a number of investors sidelined ahead of the BOJ's quarterly survey of business sentiment due out later this week.
"The BOJ move, if they actually carry out some kind of easing, could help to weaken the yen and thus support stocks, which are likely to drift down a bit after U.S. shares fell," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
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There is also likely to be a bit of a dip in the overall Nikkei from an ex-dividend effect, given the fact that Monday was the last day for investors to buy many Japanese stocks and still get dividends on them for the half year that ends this month, analysts said.
New York stocks edged down on Monday, taking a pause after a four-week rally that had raised concerns about overheating among some market players.
Nikkei futures traded in Chicago closed at 9,555, virtually unchanged from the Osaka close, and market players said the benchmark Nikkei was likely to trade between 9,450 and 9,600.
The Nikkei closed at 9,603.14 on Monday, snapping a three-day losing streak. It is set for its biggest monthly gain since March, roughly 8.8 percent as of Monday, but it is up only some 2.4 percent on the quarter.
Consumer lenders are likely to remain focus after sources said Takefuji Corp plans to file for bankruptcy on Tuesday with $5.2 billion in debts.
Consumer lenders tumbled on Monday after Japanese media reported that Takefuji was preparing to file for bankruptcy.
Shares of Takefuji were untraded due to a glut of sell orders after being suspended by the exchange for most of the day. Acom Co fell 10 percent and Promise tumbled 11 percent.
But market players said the impact of this on the broader market would be limited, noting that the sector's woes had been largely factored in.
STOCKS TO WATCH
-- Toshiba Corp
Toshiba, Japan's biggest chip maker, said on Monday it is on track to meet a forecast $1.2 billion operating profit on its chip business in the year to next March despite a firm yen, as popular new gadgets boost demand for memory chips.
-- Sharp Corp
Sharp said on Monday it would launch an e-book service and tablet-style computer in Japan in December, taking on Apple Inc's iPad and domestic rival Sony's Reader.
-- All Nippon Airways Co
ANA has reached a basic agreement with domestic and foreign forwarders on a roughly 30 percent increase for its air cargorates starting next month, the Nikkei business daily said. - Reuters
The Nikkei business daily said the central bank would consider pumping relatively longer-term funds into the money market to push down interest rates, among other moves.
But market players said trade was likely to be muted, with a number of investors sidelined ahead of the BOJ's quarterly survey of business sentiment due out later this week.
"The BOJ move, if they actually carry out some kind of easing, could help to weaken the yen and thus support stocks, which are likely to drift down a bit after U.S. shares fell," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
''
There is also likely to be a bit of a dip in the overall Nikkei from an ex-dividend effect, given the fact that Monday was the last day for investors to buy many Japanese stocks and still get dividends on them for the half year that ends this month, analysts said.
New York stocks edged down on Monday, taking a pause after a four-week rally that had raised concerns about overheating among some market players.
Nikkei futures traded in Chicago closed at 9,555, virtually unchanged from the Osaka close, and market players said the benchmark Nikkei was likely to trade between 9,450 and 9,600.
The Nikkei closed at 9,603.14 on Monday, snapping a three-day losing streak. It is set for its biggest monthly gain since March, roughly 8.8 percent as of Monday, but it is up only some 2.4 percent on the quarter.
Consumer lenders are likely to remain focus after sources said Takefuji Corp plans to file for bankruptcy on Tuesday with $5.2 billion in debts.
Consumer lenders tumbled on Monday after Japanese media reported that Takefuji was preparing to file for bankruptcy.
Shares of Takefuji were untraded due to a glut of sell orders after being suspended by the exchange for most of the day. Acom Co fell 10 percent and Promise tumbled 11 percent.
But market players said the impact of this on the broader market would be limited, noting that the sector's woes had been largely factored in.
STOCKS TO WATCH
-- Toshiba Corp
Toshiba, Japan's biggest chip maker, said on Monday it is on track to meet a forecast $1.2 billion operating profit on its chip business in the year to next March despite a firm yen, as popular new gadgets boost demand for memory chips.
-- Sharp Corp
Sharp said on Monday it would launch an e-book service and tablet-style computer in Japan in December, taking on Apple Inc's iPad and domestic rival Sony's Reader.
-- All Nippon Airways Co
ANA has reached a basic agreement with domestic and foreign forwarders on a roughly 30 percent increase for its air cargorates starting next month, the Nikkei business daily said. - Reuters
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