To: Dan3 who wrote (141001 ) 8/7/2001 12:05:06 AM From: calgal Respond to of 186894 Tokyo Stocks - Factors to watch - Aug 7 TOKYO, Aug 7 (Reuters) - Tokyo shares are likely to slither south on Tuesday with chip stocks such as Toshiba Corp hit by renewed concerns over the earnings outlook for the sector were rekindled in U.S. trade. Intel Corp (NasdaqNM:INTC - news) fell $1.40 to $30.28 amid worries that its ongoing price war with rival Advanced Micro Devices Inc (NYSE:AMD - news) in a depressed personal computer market will further crimp profits at the world's largest chipmaker. ``Given the murky outlook for semiconductor shares in the U.S., and ahead of earnings from TDK Corp , aggressive buying in chips and other tech shares seems out of question,'' said Tsuyoshi Segawa, equity strategist at Shinko Securities. Major electronic part maker TKD is to announce its April-June earnings results after the market close on Tuesday. TDK results are closely watched to give a signal of sector-wide performance because many other parts makers, such as Murata Manufacturing Co Ltd , do not unveil quarterly earnings. Banking shares may follow chip shares down after credit-rating agency Fitch a day earlier cut ratings of Japanese major banks, including Mizuho Holdings Inc . But the negative impact will be limited because the dire financial health of Japanese banks, which are saddled with a mountain of bad loans, is hardly a surprise, Segawa said. ``We don't need to wait for warnings from Fitch or Moody's to know the current state of the Japanese banks. But it's true that this won't help to push investors toward banking shares,'' he said. Traders expect the benchmark Nikkei average to move in a range between 12,000 and 12,300. It edged up 0.02 percent to 12,243.90 on Monday in one of the year's most lacklustre sessions. American Depositary Receipts (ADRs) of Japanese high-tech shares slipped in U.S. trade, with tech bellwether Sony Corp down $0.82 at $50.15, while TDK lost $2.56 to $49.59. STOCKS TO WATCH -- Mizuho Holdings Inc , Sumitomo Mitsui Banking Corp , Mitsubishi Tokyo Financial Group (MTFG) and UFJ Holdings Inc after credit-rating agency Fitch said on Monday it had cut the ratings of Japan's Big Four banks along with several other independent banks. However, the Nihon Keizai Shimbun business daily said on Tuesday Sumitomo Mitsui had decided to step up restructuring plans to double cost-cutting to 100 billion yen a year by accelerating branch closure and cutting staff. -- Lawson Inc may firm after the convenience store operator said on Monday it plans to buy back up to 34.68 billion yen worth of its shares, or up to 7.3 million shares, before the opening of the regular Tuesday session to cancel them. The share buyback, which covers 6.35 percent of its total shares outstanding, is aimed at making the stock more attractive to investors by boosting per-share valuation. -- Fast Retailing Co Ltd after Japan's biggest casual clothing retailer said on Monday it will set up a Chinese subsidiary to make and sell its Uniqlo brand products in China. The company already makes the bulk of its merchandise in China through third parties for export to Japan. -- Nisshin Fudosan Co Ltd may gain ground after the realtor said on Monday it planned a 1.5-for-1 share split for shareholders as of September 30. Companies often split shares to improve their liquidity and make them more attractive to individual investors. -- Mitsubishi Heavy Industries Ltd after the Nihon Keizai Shimbun said on Tuesday the heavy machinery maker has agreed to supply diesel engines for power generation to General Electric Co (NYSE:GE - news) of the United States, enabling Mitsubishi to tap overseas markets. MARKET CLOSES ON MONDAY -- The Nikkei average rose 1.93 points or 0.02 percent to 12,243.90. -- The September Nikkei futures contract <0#JNI:> gained 20 points to 12,230. -- September Nikkei futures traded in Chicago <0#NK:> fell 80 points to 12,105. -- The blue-chip Dow Jones industrial average (^DJI - news) slumped 111.47 points or 1.06 percent to 10,401.31. -- The technology-driven Nasdaq composite index (^IXIC - news) fell 32.07 points or 1.55 percent to 2,034.26. -- The dollar traded at 123.85 yen in late New Yorkbiz.yahoo.com