TOKYO (Thomson Financial) - Japanese shares may open higher on Monday, tracking a positive lead from Wall Street on Friday when bargain hunters picked up technology shares.
But lingering concerns about the credit crisis are likely to limit the upside after a Fortune magazine story last week suggested that Fannie Mae, the largest American buyer and backer of home loans, could be masking the true magnitude of credit-related hits to its profits.
In addition, concerns about the corporate sector and the US economy are likely to remain after FedEx Corp lowered its second quarter and full year earnings expectations and Starbucks Corp slashed its fourth quarter earnings forecast.
'Investors are also likely to focus on US housing data ahead of the Thanksgiving holiday season, which may make financial markets volatile,' Mizuho Research Institute market analyst Koji Takeuchi said.
'Local investors will also closely watch the investment positions of foreign investors amid a lack of convincing trading leads in Japan,' Takeuchi said.
The Dow Jones Industrial Average closed up 66.74 points or 0.51 percent to 13,176.79 on Friday, while the Nasdaq composite index rose 18.73 points or 0.72 percent to 2,637.24.
The Chicago-traded Nikkei futures contract settled at 15,190 points, little changed from 15,200 at the Osaka Securities Exchange on Friday.
On the Tokyo bourse, the Nikkei 225 Stock Average fell 241.69 points or 1.6 percent to 15,154.61, while the broader TOPIX shed 27.19 points or 1.8 percent to 1,471.67.
Ahead today, the Japan Department Stores Association will release nationwide department stores sales data for October.
Meanwhile, Sumitomo Mitsui Financial Group, Mitsui Trust Holdings and Square Enix will release earnings results for half year through September.
Stocks to watch include Daiichi Sankyo following a report that the Japanese drug maker is expanding its US pharmaceutical business.
(1 US dollar = 111.09 yen)
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