TOKYO (XFN-ASIA) - Share prices are expected to open higher, tracking another record close on the Dow Jones Industrial Average Friday after retail sales confirmed the strength of US consumer spending, dealers said.
The US Commerce Department said retail sales rose 0.9 pct in December, the best in five months, and sales growth last month was also better than the 0.7 pct analysts had been expecting.
But local investors may focus on the release just 10 minutes before the opening bell of November private sector machinery orders for fresh clues on the trend of Japanese investment activity and on the prospect for a rate decision at this week's policy board meeting, dealers said.
Economists here forecast a month-on-month rise of 3.4 pct for November private sector machinery orders, viewed as the leading indicator for corporate capital investment.
In New York, the Dow Jones Industrial Average closed up 41.10 points, or 0.33 pct, to 12,556.08, while the Nasdaq composite rose 17.97 points, or 0.72 pct, to 2,502.82.
In Chicago, the Nikkei futures contracts settled at 17,165 points, up from 17,080 at the Osaka Securities Exchange yesterday, suggesting a firm opening for the Tokyo market.
On the Tokyo bourse Friday, the Nikkei 225 Stock Average closed up 218.84 points or 1.30 pct at 17,057.01, while the TOPIX index of all issues listed on the Tokyo Stock Exchange's first section closed up 28.55 points or 1.72 pct at 1,685.27.
Stocks to watch include Sharp after the company said it aims to sell nine mln liquid crystal display (LCD) television sets worldwide in the fiscal year beginning in April, 50 pct more than it expects to sell in the current year.
Honda Motor Co may be active on a report that the automaker plans to set up a 200 mln-usd car plant in India.
The Press Trust of India (PTI) news agency reported that the new plant will be Honda Motor's second in India and would have initial capacity of 50,000 vehicles.
Aeon Credit Service Co Ltd may move on a report that it plans to raise funds directly from the capital markets in Malaysia using Islamic financial methods.
The Nikkei reported, without citing sources, that Aeon Credit intends to issue bonds to raise 400 mln rgt, or about 13.6 bln yen, for investments in its local credit card system.
Hino Motors Ltd could rise on a report that the truck maker will release its diesel-electric Dutro Hybrid truck in Australia this month.
The Nikkei reported, without citing sources that by taking advantage of brisk demand for environment-friendly vehicles outside Japan, the truck maker aims to triple its overseas truck sales to 150,000 by 2015.
Softbank Mobile Corp may be active on a report that it has decided to bid on new frequencies for cellular communications services that the Ministry of Communications plans to allocate as early as this summer.
(1 usd = 120.33 yen)
yasuhiko.seki@xfn.com