TOKYO, Jan 24 Japan's Nikkei share average is
expected to bounce slightly after three straight days of
declines, with Japanese suppliers to the iPhone in focus after
Apple announced disappointing sales figures for the
Market players said the Nikkei was likely to trade between
10,400 and 10,600 on Thursday after the benchmark fell 2.1
percent to a three-week closing low of 10,486.99 on Wednesday,
as investors took profits on a firmer yen.
"We should see a small rebound today because it's fallen so
much over the past few days... there will be people wanting to
buy on the dip," said Toshiyuki Kanayama, senior market analyst
"But Japan's trade data out this morning could affect the
exchange rate, and Apple's results were pretty bad."
The world's largest technology company shipped 47.8 million
iPhones, lower than the roughly 50 million that Wall Street
analysts had predicted, while its first quarter revenue rose to
$54.5 billion, below the average analyst estimate of $54.73
billion, according to Thomson Reuters I/B/E/S.
Japanese part makers for the iPhone such as Sharp Corp
, Murata Manufacturing Co Ltd and Foster
Electric Co Ltd, will come under scrutiny after Apple
shares fell more than 10 percent in extended trading.
Nikkei futures in Chicago closed at 10,510, up 0.4
percent from the close in Osaka of 10,470.
The Nikkei has dropped 4.2 percent from a 32-month high of
10,952.31 hit on Jan. 15, the peak of a steep rally starting in
mid-November, when then-incoming leader Shinzo Abe began calling
for a weaker yen and aggressive monetary easing.
The Bank of Japan responded to pressure from Abe by
announcing a 2 percent inflation target at its policy meeting on
Tuesday. It also committed to open-ended easing from 2014, a
decision that disappointed some investors hoping for more
Foreign brokers put in net buy orders of 15.4 million
shares, their largest net purchase since Jan. 15.
> S&P up for sixth day but Apple slip could halt rally
> Yen steady versus dollar, but downtrend seen intact
> Prices edge up as U.S. debt ceiling extended
> Gold down on EU data, better economic outlook
> US oil prices plunge after Seaway pipeline cuts rates
STOCKS TO WATCH
- TOSHIBA CORP
Toshiba is to discuss forming a joint venture with General
Electric Co for the development and sales of combined
cycle gas turbines, the Nikkei business daily said on Thursday,
in a bid for further synergy between Toshiba's share of the
Asian market and GE's client base in Europe and the United
-MITSUBISHI HEAVY INDUSTRIES LTD
Mitsubishi Heavy Industries will spend up to 60 billion yen
($678 million) on the construction of a facility to build a
small fuel-efficient passenger jet, the Nikkei business daily
said, with the aim of turning out 10 planes a month by 2020.