TOKYO (XFN-ASIA) - Share prices are expected to open lower, tracking a decline on Wall Street Friday, but a weak yen is likely to lend some support to the market by strengthening hopes for better than expected profits at exporters, dealers said.
Foreign investors are likely to stay out of the market due to the Christmas holiday, which will make the local market prone to technically-driven selling in the wake of the sluggish performance on Wall Street, they said.
But losses may be trimmed on emerging hopes that foreign investors will increase the weighting of Japansese shares in the new year due to the laggard nature of the local market, dealers said.
In New York, the Dow Jones Industrial Average closed down 78.03 points, or 0.63 pct at 12,343.22, while the NASDAQ index ended down 14.67 points or 0.61 pct at 2,401.18.
In Chicago, the Nikkei futures contracts settled at 17,145 points, up from 17,110 at the Osaka Securities Exchange Friday.
On the Tokyo bourse Friday, the Nikkei 225 Stock Average closed up 57.13 points or 0.34 pct at 17,104.96, while the broader TOPIX index of all first-section issues rose 0.80 points or 0.05 pct to 1,672.10.
Ahead in Japan, the Ministry of Finance and the Cabinet Office will announce the results of their joint survey on business conditions for the October-December period.
The government in the afternoon will release its monthly economic report for December.
Stocks to watch include Matsushita Electric Industrial and Victor Co of Japan Ltd a report that the Osaka-based Matsushita has decided to sell at least half of its 52.4 pct stake in JVC and it is negotiating a deal with prospective buyer Kenwood Corp.
The world's largest consumer electronics maker however said in a statement that it 'has not decided anything in regards to the sale of its stakes in Victor Co of Japan Ltd.'
Nikko Cordial Corp may move on a report that the brokerage house has tapped chief information technology officer Shoji Kuwashima to become its next president, replacing Junichi Arimura.
The Nihon Keizai Shimbun reported, without citing sources that Arimura and chairman Mashashi Kaneko will step down, taking responsibility for alleged accounting improprieties.
(1 usd=118.90 yen)
yasuhiko.seki@xfn.com