Nikkei set to head lower, eyeing dollar moves

 TOKYO, Oct 7 (Reuters) - Japan's Nikkei stock average is set
to head lower on Tuesday after the Dow tumbled below 10,000 for
the first time in four years on growing fears for the global
economy, with a surging yen weighing on shares and possibly even
sending the Nikkei below 10,000 as well.

 One stock to watch will be Sharp Corp (6753.T: Quote, Profile, Research, Stock Buzz), which cut its
annual operating profit outlook by one-third on Monday due to
sluggish domestic sales of mobile phones, missing market
expectations by a wide margin. [ID:nT314929]

 The yen surged broadly, with the dollar fetching around
101.59 yen in early Asian trade <JPY=> and market participants
saying sharp further rises could perhaps even push the Nikkei
below 10,000, a level unseen since December 2003.

 "Movements today really depend on the dollar, but it's hard
to imagine any bargain-hunting emerging in the face of the
economic uncertainty and growing worry about Japanese company
results," said Yumi Nishimura, deputy general manager at the
investment advisory section of Daiwa Securities SMBC.

 "The market is now hoping for some sort of policy response
from the authorities," she added.

 The benchmark Nikkei .N225 is expected to range from 9,800
to 10,300. It finished Monday down 4.3 percent at 10,473.09, its
lowest close since February 2004. The broader Topix .TOPX lost
4.7 percent for its lowest close since December 2003.

 Nikkei futures traded in Chicago 2NKc1 closed at 10,095
compared to the Osaka close of 10,450 JNIc1.
----------------------MARKET SNAPSHOT @ 2259 GMT ------------

                 INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500             .SPX       1056.89     -3.85%   -42.340
USD/JPY             <JPY=>       101.91       0.54%     0.550
10-YR US TSY YLD    <US10YT=RR>  3.4606          --    -0.137
SPOT GOLD           <XAU=>       858.1        0.08%     0.650
US CRUDE            CLc1       88.36        0.63%     0.550
DOW JONES           .DJI       9955.50     -3.58%   -369.88
-------------------------------------------------------------
> US Dow dives below 10,000 on credit, recession fears   [.N]
> Dollar, yen soar as anxiety over crisis mounts       [USD/]
> Prices soar as stock slide spurs safety bid           [US/]
> Gold rises 4 pct amid stock, commods decline         [GOL/]
> US oil prices rise more than $1 after settlement      [O/R]
STOCKS TO WATCH

 -- Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz)

 Toshiba expects prices for NAND flash memory chips to fall
between 40 percent and 50 percent in the next four quarters to
September, CEO Atsutoshi Nishida said. [ID:nL6432416]

 -- Sharp Corp (6753.T: Quote, Profile, Research, Stock Buzz)

 Sharp cut its annual operating profit outlook by one-third on
Monday due to sluggish domestic sales of mobile phones, missing
market expectations by a wide margin. [ID:nT314929]

 -- Elpida Memory Inc (6665.T: Quote, Profile, Research, Stock Buzz)

 Elpida, the world's No.3 maker of PC memory chips, said on
Monday it will make its chips smaller to cut costs and could
freeze a plan to produce new models because of the credit
squeeze.

 Elpida said it plans to mass-produce smaller versions of its
1 Gigabit chips by the end of this year. The smaller chips are 20
percent cheaper than existing ones with the same capacity.
[ID:nT33743]

 -- Renown Inc (3606.T: Quote, Profile, Research, Stock Buzz)

 Renown plans to sell its stake in British clothier Aquascutum
by February 2009 as part of a restructuring that will also
include selling real estate and cutting staff, the Nikkei
business daily said on Tuesday. [ID:nN06346627]

 -- Ezaki Glico Co (2206.T: Quote, Profile, Research, Stock Buzz)

 Ezaki Glico will book 2.18 billion yen in securities'
valuation losses as an extraordinary charge for the fiscal first
half ended September 30 after prices for its stockholdings and
other investments dropped, the Nikkei business daily said on
Tuesday. [ID:nN06411341]

 -- Ringer Hut Co Ltd (8200.T: Quote, Profile, Research, Stock Buzz)

 The restaurant chain operator said on Monday that it expects
a bigger net loss for the year ending in February 2009 as it was
forced to close 33 additional unprofitable stores.

 The firm said it expected to post a 1.5 billion yen full-year
net loss, worse than 477 million yen loss in the previous
forecast. It said it would close 46 stores for the second half,
or about 8 percent of the total.
 (Reporting by Elaine Lies; editing by Sophie Hardach)