TOKYO (Thomson Financial) - Japanese shares are expected to open lower Monday following further declines on Wall Street on Friday, as skittish investors, unable to hold on to much optimism about the economy, drew little comfort from President Bush's stimulus plan.
The US president announced a plan for about 145 billion US dollars worth of tax relief, but this failed to convince investors who are wary about the increased downside risk to the economy.
The Dow Jones Industrial Average closed down 59.91 points or 0.49 percent at 12,099.30 on Friday, while the technology-focused Nasdaq fell 6.88 points or 0.29 percent to 2,340.02.
On the Tokyo bourse, the blue-chip Nikkei 225 Stock Average closed up 77.84 points or 0.6 percent at 13,861.29, extending gains for a second day. The broader Topix climbed 11.06 points or 0.8 percent to 1,341.50.
The Chicago-traded Nikkei futures contract settled at 13,560 points, down from 13,680 on the Osaka Securities Exchange on Friday and suggesting a weak start for the market.
Ahead today, the Bank of Japan will begin its two-day policy board meeting.
The Cabinet Office will release revised leading and coincident indexes for November, while the Japan Franchise Association will announce December convenience store sales.
The Real Estate Economic Institute will also release condominium sales for December and 2007.
Stocks to watch include Kirin Holdings Co on a report that the Japanese brewer is likely to book a group net profit of around 60 billion yen for the fiscal year ended December, up 12 percent from a year earlier and 6 billion yen higher than earlier projections.
Namco Bandai Holdings Inc may draw some buying interest on a report that its toy-making unit Bandai will take a 33.4 percent stake in Tsuburaya Production Co, the creator of the popular television series 'Ultraman', for around 900 million yen in to bid to prop up sales.
(1 US dollar = 106.84 yen)
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