KEY POINTS:
TOKYO - Japanese stocks are likely to take their lead from a Bank of Japan survey of business sentiment due today, as investors are keen to see how financial market turmoil has affected the country's big firms.
Shares in IHI will likely fall after the heavy machinery and jet engine maker slashed its annual earnings outlook on Friday to forecast an operating loss on problems in its energy plant division and said it might revise that even lower.
"The BOJ tankan survey is a key point for the day's session," said Masayoshi Yano, a senior manager of investment information at Tokai Tokyo Securities.
The closely watched quarterly survey is expected to show big manufacturer sentiment worsened slightly in September, economists said in a Reuters poll, with the yen's rise and the global market turbulence of the last few months taking their toll.
Yano also said investors are likely to shift their focus to company results, with the earnings season kicking off this month.
"Many forecast revisions are expected to be announced, and investors are likely to pick up companies with good results such as shippers," he said.
Market participants said the benchmark Nikkei average will likely move between 16,650 and 17,900 today.
Nikkei futures traded in Chicago finished Friday at 16,765, which was 65 points below the Osaka close, pointing to a lower opening.
The Nikkei finished Friday down 0.3 per cent at 16,785.69.
US stocks dipped on Friday, with the the Standard & Poor's 500 Index falling 0.3 per cent as money managers locked in profits on the last trading day of a strong September.
- Reuters
