TOKYO (XFN-ASIA) - Share prices are expected to open lower, tracking losses on Wall Street Friday due to receding expectations for a rate cut there after inflation last month rose faster than the market had expected, dealers said.
The US Labor Department reported Friday that its consumer price index rose 0.4 pct in February, a bigger rise than the consensus forecast of a 0.3 pct increase. The rise was double that of January and the largest since a similar increase in December.
Investors are also likely to take a wait-and-see stance amid lingering uncertainty over the prospect of the yen, which has appreciated nearly 4 yen since the start of this year, dealers said.
The Dow Jones Industrial Average closed down 49.27 points or 0.41 pct at 12,110.41, while the Nasdaq composite index was off 6.04 points or 0.25 pct at 2,372.66.
In Chicago, the Nikkei futures contract settled at 16,730 points , up slightly from 16,700 at the Osaka Securities Exchange on Friday.
On the Tokyo bourse Friday, the Nikkei 225 Stock Average closed 116.24 points or 0.69 pct lower at 16,744.15, while the TOPIX index of all first-section issues slid 17.12 points or 1.01 pct to end at 1,677.06.
Ahead in Japan, the Japan Department Stores Association will release nationwide department store sales for February, while the Japan Iron and Steel Federation will report crude steel output for February.
The Bank of Japan will begin a two-day policy board meeting.
Stocks to watch include Hitachi after the electronics firm said it will cut its annual dividend to 6 yen per share for the fiscal year ending March 31 from the 11 yen it paid for the last fiscal year because of the severe environment for its business.
Cosmo Oil Co Ltd may be active on a report that the oil refiner will bolster its energy development overseas, by transferring its stakes in and personnel at affiliated development firms to a subsidiary.
(1 usd = 116.71 yen)
yasuhiko.seki@xfn.com
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