Nikkei expected to break 9-day losing streak

TOKYO, July 2 (Reuters) - Japan's Nikkei average is expected
to rise on Wednesday after losing nearly 7 percent in a nine-day
losing streak, with high oil prices boosting Mitsubishi Corp
(8058.T: Quote, Profile, Research) and other trading houses, but with gains limited by
fears about the global economy.

One stock to watch is oil distributor Showa Shell Sekiyu KK
(5002.T: Quote, Profile, Research) after the Nikkei business daily reported on Wednesday
that it plans to build one of the world's biggest solar panel
plants at a cost of more than 100 billion yen ($943 million).

"Japanese stocks are now at a good buying level after the
recent losing streak, but gains will be limited ahead of U.S.
jobs data on Thursday, with profit-taking at the highs," said
Hiroichi Nishi, general manager at Nikko Cordial Securities.

"Overall, there's still worry about the global economy,
inflation and high oil prices, so with these factors in mind
it'll be hard to buy actively."

The benchmark Nikkei .N225 is expected to move from 13,400
to 13,650. It closed at 13,463.20 on Tuesday to bring its losing
run to nine days, the first such sequence since September 2004.

Nikkei futures traded in Chicago 2NKc1 closed at 13,505 on
Tuesday compared to the Osaka futures JNIc1 close of 13,310.
---------------------MARKET SNAPSHOT @ 2249 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1284.91 0.38% 4.910
USD/JPY JPY= 106 -0.04% -0.040
10-YR US TSY YLD US10YT=RR 4.0079 -- 0.000
SPOT GOLD XAU= 939.4 0.06% 0.550
US CRUDE CLc1 141.72 0.53% 0.750
DOW JONES .DJI 11382.26 0.28% 32.25
------------------------------------------------------------
> GM's sales surprise lifts Wall St, Starbucks up late [.N]
> Dollar falls against euro as ECB decision approaches [USD/]
> TREASURIES-Bonds slip as U.S. stocks clamber back [US/]
> Gold ends up on inflation fear, near 10-week high [GOL/]
> Oil rises on supply worries, Iran tensions [O/R]
STOCKS TO WATCH

-- Yoshinoya Holdings Co Ltd (9861.T: Quote, Profile, Research)

The beef-bowl restaurant chain said on Tuesday its operating
profit fell 69.8 percent to 799 million yen ($7.54 million) for
the quarter ended in May, hurt by a steep fall in revenue
compared with a year earlier, when it saw a jump in sales after
it extended hours of serving its mainstay dish.

But it kept its full-year outlook for a 7.1 billion yen in
operating profit.

-- Shinsei Bank Ltd (8303.T: Quote, Profile, Research)

The mid-sized lender said on Tuesday it has scrapped plans to
issue a 30 billion yen covered bond this month, which would have
been the first offering of its kind in Japan.

The bank said changes in its corporate calendar and internal
considerations had forced it to reschedule the pricing of the
bond. [ID:nT306606]

-- Matsushita Electric Industrial Co Ltd (6752.T: Quote, Profile, Research)

Panasonic maker Matsushita said on Tuesday it aims for 100
billion yen in sales from its nascent home-use fuel-cell business
by 2015 as demand for greener energy sources grows. [ID:T303598]

-- Showa Shell Sekiyu KK (5002.T: Quote, Profile, Research)

The Japanese oil distributor plans to build one of the
world's biggest solar panel plants at a cost of more than 100
billion yen, the Nikkei business daily reported in its online
edition.

The Nikkei said the plant, which will produce solar cells
made of copper and indium, could be built in Japan, Europe or the
Middle East or split into several locations. [ID:nN01289977]

-- Kirin Holdings Co (2503.T: Quote, Profile, Research)

The Japanese brewer will likely report a 28 percent rise in
its January-June profit, missing its own forecast of a 38 percent
jump due to weaker-than-expected growth at its soft drink unit,
the Nikkei business daily said on Wednesday.

-- Sony Corp (6758.T: Quote, Profile, Research), Pioneer Corp (6773.T: Quote, Profile, Research)

Sony affiliate Field Emission Technologies Inc plans to start
production of a new type of flat panel by the end of 2009 and
will acquire a Pioneer plasma panel plant by the end of the year
to launch commercial production of the panels, the Nikkei
business daily said on Wednesday.
(Reporting by Elaine Lies; Editing by Michael Watson)