Nikkei seen falling but support may hold again

TOKYO, June 9 (Reuters) – The Nikkei stock average is likely
to head lower to test an important support level on Thursday as
worries about a slowing economy prompted U.S. stocks to extend
losses for the sixth straight day and pushed the Japanese yen to
a one-month high.
But many market players think support around 9,350 in the
Nikkei will likely hold as it has for the past few days, as a
fall below that level would mean the index would be trading
below book value and also given hopes of buying by the Bank of
Japan.
“U.S. shares lacked momentum and the dollar has fallen below
80 yen, so the Nikkei is likely to drop below 9,400,” said
Kazuhiro Takahashi, general manager at Daiwa Securities.
But the fact that the Nikkei managed to stay above key
technical support at 9,317 — a March 29 intraday low — over
the past few days despite faltering Wall Street shares has
prompted the view that the downside may be limited.
“Supply chain problems are showing some signs of progress
and economic sentiment is also improving,” Takahashi said,
referring to the data that showed Japanese service sector
workers sentiment improved sharply in April.
Nikkei futures in Chicago <2NKc1> ended at 9,385
on Wednesday, down from their Osaka  close of 9,460.
The benchmark Nikkei average closed up 0.1
percent at 9,449.46 on Wednesday, while the broader Topix
also gained 0.1 percent to 814.45.
Analysts said the Nikkei is expected to trade between 9,350
and 9,450 on Thursday.
———————-MARKET SNAPSHOT @ 2251 GMT ————
INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500                   1279.56     -0.42%    -5.380
USD/JPY                   79.92        0.01%     0.010
10-YR US TSY YLD     2.9459          —    -0.049
SPOT GOLD                 1535.69     -0.07%    -1.110
US CRUDE                   100.99       0.25%     0.250
DOW JONES                 12048.94    -0.18%    -21.87
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> Wall St slips for a sixth day on growth concerns
> U.S. dollar, yen strengthen on global growth fears
> Bonds rally on slow-growth outlook
> Gold pressured by Bernanke remarks, dollar rise
> Oil jumps as OPEC talks fail, eyes Saudi solo hike
STOCKS TO WATCH
— J-Power , Itochu Corp
A consortium including Electric Power Development ,
or J-Power, and Itochu Corp is close to winning an
Indonesian order to build and operate a coal-fired facility,
which is worth 320 billion yen ($4 billion), the Nikkei business
daily reported.
— Softbank , NTT DoCoMo
Japanese mobile phone operator Softbank Corp plans to
reject rival NTT DoCoMo Inc’s request to reveal how it
calculates the network connection fees charged to other mobile
phone services, the Nikkei business daily reported.
DoCoMo had last month said that Softbank’s connection fees
were too high and asked the Telecommunications Business Dispute
Settlement Commission to convince the cell phone service
provider to disclose how it arrived at the fee, the Nikkei said.

— Nissan
Nissan Motor is to invest 192 million pounds ($315 million)
in Britain on the next version of its Qashqai model, a crossover
that blends elements of the SUV and hatchback, the Japanese
carmaker said on Wednesday.