http://yahoo.reuters.com/stocks/Quo...6-04-30_23-36-22_T174475&symbol=MSFT.O&rpc=44
Tokyo stocks seen flat before holidays, yen eyed
Sun Apr 30, 2006 7:36 PM ET
TOKYO, May 1 (Reuters) - Japanese stocks are expected to move little on Monday, with investors holding back before the start of a series of national holidays, though technology firms and other exporters may be hit by a rise in the yen.
Technology firms may also face added pressure after shares of Microsoft Corp. (MSFT.O: Quote, Profile, Research) slid more than 11 percent in U.S. trade on Friday after its earnings disappointed investors.
Matsushita Electric Industrial Co. (6752.T: Quote, Profile, Research) may be in focus after it posted its highest annual profit in 15 years. However, the maker of Panasonic products also forecast a smaller-than-expected rise this year.
Japanese investors are likely to hold back out of concern of what may happen in key foreign markets while Japan is on holiday, said Yutaka Miura, deputy manager of equity information at Shinko Securities.
Japan's markets will be open on Monday and Tuesday this week.
"U.S. markets will have four days of trade once Japan is closed ... I don't expect that we'll be seeing the (Tokyo) market move much at all," Miura said.
"The currency level has moved into the 113 range, so that is also likely to keep stocks from advancing," he said.
The yen <JPY=> rose to 113.64, a three-month high, against the dollar on Friday abd was trading at around 113.72 early on Monday.
A stronger yen is a minus for firms that make the bulk of their profits outside Japan, as it eats into profits when earnings from abroad are brought home.
Traders expect the Nikkei average <.N225> to move between 16,800 and 17,000 on Monday. On Friday it fell 1.22 percent to 16,906.23, its lowest close in a month.
U.S. tech stocks ended lower on Friday, after Microsoft's profit forecasts pulled down the major indexes. The Dow Jones industrial average <.DJI> gave up 0.14 percent, while the Nasdaq Composite Index <.IXIC> lost 0.95 percent.
In Chicago, Nikkei futures expiring in June <2NKM6> closed at 16,935 a decline of 45 points from the Osaka <JNIc1> finish.
STOCKS TO WATCH
-- Toshiba Corp. (6502.T: Quote, Profile, Research).
The electronics firm posted a 70 percent rise in annual net profit on Friday, helped by flash memory operations, but it fell short of expectations with a forecast of slower growth this year. [ID:nT143356]
-- Nomura Holdings Inc. (8604.T: Quote, Profile, Research).
Japan's biggest brokerage reported a better-than-expected fivefold rise in quarterly profit on Friday as its underwriting businesses flourished and its merchant banking arm booked a windfall gain. [ID:nT143537]
-- NTT DoCoMo Inc. (9437.T: Quote, Profile, Research).
Japan's top mobile operator reported a higher full-year profit as it cut costs and added customers to its advanced network, and it forecast a smaller-than-expected profit decline this year. [ID:nT142349]
-- All Nippon Airways Co. (9202.T: Quote, Profile, Research).
Japan's No.2 airline posted a better-than-expected 14 percent rise in full-year operating profit but forecast a bigger reduction this year than the market projected on rising fuel prices. [ID:nT149928]
-- Suzuki Motor Corp. (7269.T: Quote, Profile, Research).
The Japanese auto maker reported a smaller-than-expected 5.9 percent rise in annual operating profit on Friday, though sales were healthy worldwide, and projected little change in earnings for the current business year. [ID:nT165822]
-- SUMCO Corp. (3436.T: Quote, Profile, Research)
The chip firm may build a new silicon wafer plant but no final decision has been made, a spokesman said on Friday in response to a report the company planned a 300 million yen ($2.6 billion) factory in southwestern Japan.