Nikkei set to fall on Wall St loss, political uncertainty

TOKYO, June 2 (Reuters) – The Nikkei average is expected to
fall on Thursday after Wall Street shares posted their biggest
fall in 10 months and amid growing prospects of a split in
Japan’s ruling party.
A former prime minister joined the swelling ranks of ruling
party rebels trying to oust Prime Minister Naoto Kan, raising
the risk that a no-confidence vote will pass in parliament on
Thursday forcing him to quit.[ID:nL3E7H11SX]
“I think the Nikkei will give up about half of its strong
gains of the past two sessions,” said Takashi Hiroki, chief
strategist at Monex Securities.
“But given that Japanese shares have not risen much as U.S.
shares, their fall may be limited,” he added.
The Dow Jones industrial average fell 2.2 percent on
Wednesday, a dismal start for June, a month that is historically
weak for equities after both private payroll data and key
manufacturing survey missed estimates.
Nikkei futures in Chicago <2NKc1> ended at 9,530, down 90
points from their Osaka  close.
The benchmark Nikkei climbed 0.3 percent to
9,719.61 On Wednesday, extending its gain of 2 percent the
previous day to close at its highest level in three weeks.
The broader Topix index edged up 0.1 percent to
839.41.
Analysts said the Nikkei is expected to trade between
9,500-9,650 on Thursday.
———————-MARKET SNAPSHOT @ 2259 GMT ————
INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500                   1314.55     -2.28%   -30.650
USD/JPY                   80.91        0.06%     0.050
10-YR US TSY YLD     2.9444          —    -0.115
SPOT GOLD                 1540.59      0.03%     0.390
US CRUDE                   99.82       -0.47%    -0.470
DOW JONES                 12290.14    -2.22%   -279.65
————————————————————-

> June starts ominously for teetering Wall St
> Euro off 4-week high; Moody’s cuts Greece rating
[ FRX  /]
> Fears of slowdown send 10-yr yield below 3 pct
> Gold stays strong as safety asset after weak US data
> Oil falls on weak U.S. economic data
STOCKS TO WATCH
– Sharp Corp
Sharp said it will convert a large part of one of its LCD
panel plants to cater to smartphone and tablet computer makers,
including Apple Inc , the Nikkei business daily
reported.
The company, which may have orders to supply high-resolution
LCD panels for iPads, will convert parts of its Kameyama No.2
facility and make panels for tablet computers there this year,
the newspaper said.

– Carmakers
Toyota Motor Corp’s U.S. sales fell 33 percent in
May while those of Honda Motor Co Ltd dropped 23
percent as overall U.S. auto sales fell short of expectations.
Tightening supplies of vehicles after Japan’s earthquake
emboldened many companies, including Toyota and Honda, to raise
car and truck prices, a strategy that analysts and investors
said had backfired. Sales at Nissan Motor Co Ltd fell 9
percent.