Nikkei seen trapped in range; eyes on China data

TOKYO, June 14 (Reuters) – Japan’s Nikkei stock average is
expected to trade in a narrow range on Tuesday as worries about
slower global growth keep investors on the sidelines while
market players cast a wary eye on Chinese data and shares.
Chinese consumer price data may set the tone of Tuesday’s
trade, market players said, after data the previous day showed
that China’s exports to the United States and the European Union
in May had slumped to their weakest since late 2009, excluding
Lunar New Year holidays.
Chinese consumer inflation, industrial output and urban
investment data for May is due at 0200 GMT, and market players
are concerned that weak reading could push Shanghai shares
to eight-month lows.
“The market is capped by uncertainty over the global
economy. But at the same time, downside support is solid because
of cheap valuations,” said Hiroichi Nishi, general manager at
SMBC Nikko Securities.
Analysts say Tokyo shares still look attractive as they are
traded roughly at book value compared with around 2.1 times book
value for stocks in the benchmark S&P 500 .
Foreign brokerages have kept buying Japanese shares for more
than a week, likely reflecting a steady drip of bargain-hunting
from foreign investors, analysts said.
The Bank of Japan is due to announce its policy decision
later in the day after a two-day rate review, although analysts
expect the central bank to stand pat.
Nikkei futures in Chicago <2NKc1> ended at 9,435 on Monday,
down 15 points from their Osaka  close of 9,450.
On Monday, the benchmark Nikkei fell 0.7 percent to
9,448.21, while the broader Topix shed 0.6 percent to
812.26.  Turnover hit the lowest daily total for this year.
Analysts said the Nikkei is expected to trade between 9,350
and 9,500 on Tuesday.
———————-MARKET SNAPSHOT @ 2243 GMT ————
INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500                   1271.83      0.07%     0.850
USD/JPY                   80.15       -0.06%    -0.050
10-YR US TSY YLD     2.9838          —     0.011
SPOT GOLD                 1515.19      0.03%     0.460
US CRUDE                   96.98       -0.33%    -0.320
DOW JONES                 11952.97     0.01%      1.06
————————————————————-

> Wall St ends flat as uncertainty persists
>  Euro hits record low vs Swiss franc on Greece worry

> Bonds slip as investors add a little risk
> Gold falls 1 pct on oil slide, economic worries
> Brent up but buffeted by supply, economic fears
STOCKS TO WATCH
—  Mitsubishi Corp
Mitsubishi Corp is looking to build large-scale solar power
plants in Japan, ahead of the start of a national feed-in tariff
program, the Nikkei business daily reported on Tuesday.
The facility, to be built in Kumamoto in Southern Japan, would
have an output of more than 1 megawatt, with an initial
investment of about 600-700 million yen ($7.5-$8.7 million) per
megawatt, the Nikkei said. Talks on large-scale solar projects
are also under way with other local governments, the daily
reported.
— Toyota Motor Corp
Toyota will be able to assemble all the vehicles it was
producing before the March earthquake by October, a month
earlier than initially planned, as the company’s parts supply
chain has been recovering faster than expected, the Nikkei
business daily reported.
— eAccess Ltd
The mobile communications service provider will start
offering smartphones this summer by teaming up with China’s
Huwaei Technologies Co , the Nikkei business daily said.

The two models to be sold through eAccess will be the first
smartphones from Huawei to hit Japan, with one of the models to
be running on the latest version of Google Inc’s
Android operating system, Nikkei reported.
— Tokyo Electric Power Co
The government is expected to approve a compensation scheme
for the operator of Fukushima plant.