Tokyo shares outlook - Higher on strong quarterly results

TOKYO (XFN-ASIA) - Share prices are expected to open firmer as investors snap up stocks of companies that reported robust quarterly results although modest losses on Wall Street may trim the market's gains, dealers said.

After trading hours yesterday, Canon Inc said its net profit jumped in the first half to June due to brisk sales of digital cameras and printers, and raised its full-year earnings forecasts.

Sony Corp returned to profit in the June quarter as its core consumer electronics business made a strong recovery because of strong sales of flat televisions.

Overnight, the Dow Jones Industrial Average lost 2.08 points to close at 11,100.43, while the broader Standard & Poor's 500 index dropped 5.20 points, or 0.41 pct, to 1,263.20. The tech-heavy Nasdaq composite index fell 15.99 points, or 0.77 pct, to 2,054.47.

Chicago-traded Nikkei futures settled at 15,190 points, up from 15,180 at the close of the Osaka Securities Exchange yesterday, suggesting a firmer start for the market.

At the Tokyo Stock Exchange, the Nikkei 225 Stock Average closed up 295.71 points or 2.0 pct at 15,179.78, its highest finish in two weeks, while the broader TOPIX index of all first-section issues gained 21.37 points or 1.4 pct to 1,541.81.

Among data on tap include the nationwide consumer price index data for June and Tokyo CPI for July due 30 minutes before the market opens. The latest unemployment rate and household spending data will also be released at the same time.

Retail sales last month will be released at 8.50 am Tokyo time.

Mitsubishi Corp, Mitsubishi Electric, Sega Sammy Holdings, Fuji Photo Films, Mazda, Itochu, Kenwood, Kawasaki Heavy Industries, Nissan Diesel Industries, Marubeni, Sumitomo Corp, Isetan, Central Japan Railways and TV Asahi will report quarterly results.

Sony may gain after returning to profit in the three months to June as well as Canon after its first-half net income rose 22 pct.

Isuzu Motors Ltd may also advance after reporting first-quarter net profit jumped 44 pct on increased truck sales in Japan.

Nikon Corp may rise after its June quarter net profit more than doubled from a year earlier on robust sales of high-end digital cameras.

NEC Corp may edge higher after returning to the black in April-June due to stronger-than-expected sales of its network systems combined with reduced losses from its semiconductor businesses.

Japan's largest electronics component maker Kyocera Corp may also advance after its June quarter net profit more than doubled.

(1 usd = 115.75 yen)

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