Japan stocks may tumble on yen, recession fears

TOKYO, March 7 (Reuters) - Investors in Japanese stocks may
head for the exits on Friday, with exporters such as Honda Motor
Co (7267.T: Quote, Profile, Research) likely to take a hit on a stronger yen and rekindled
U.S. recession fears that drove the Standard & Poor's 500 down to
its lowest close in 18 months.

Nikkei futures traded in Chicago 2NKc1 closed at 12,815.00
on Thursday, down a hefty 415 points from the close in Osaka
JNIc1, pointing to a possible tumble at the start of trade.

"Worries about the fallout of the U.S. financial problems on
the real economy and a recession have re-emerged," said Yutaka
Miura, deputy manager of the equity information department at
Shinko Securities.

"If the U.S. jobs data (due later on Friday) comes out
negative, that would further accelerate a stock sell-off," he
added.

On Thursday, the benchmark Nikkei average .N225 rose 1.9
percent to end at 13,215.42, a day after logging its lowest close
since Jan. 23.

Among individual issues, oil and gas field developer Inpex
Holdings Inc (1605.T: Quote, Profile, Research) and other energy shares may be in favour
after oil hit a record high near $106 on Thursday, fueled by the
weak dollar and OPEC's decision to hold crude output steady.
[ID:nSP88706]
----------------------MARKET SNAPSHOT @ 2249 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1304.34 -2.2% -29.360
USD/JPY <JPY=> 102.47 -0.13% -0.130
10-YR US TSY YLD <US10YT=RR> 3.594 -- 0.000
SPOT GOLD <XAU=> 975.8 -0.26% -2.500
US CRUDE CLc1 105.47 0.00% 0.950
DOW JONES .DJI 12040.39 -1.75% -214.60
-------------------------------------------------------------
> Wall St sinks on mortgage fallout, economy [.N]
> Dollar plummets as ECB dashes rate-cut hopes [USD/]
> 2-year Treasury note yield dips below 1.5 pct [US/]
> Gold retreats from record high on profit taking [GOL/]
> Oil hits record near $106 on weak dollar, OPEC [O/R]
STOCKS TO WATCH

-- Pioneer Corp (6773.T: Quote, Profile, Research)

Pioneer and Panasonic brand maker Matsushita Electric
Industrial Co (6752.T: Quote, Profile, Research) plan to jointly develop plasma panels, the
Nikkei business daily said on Friday.

Pioneer is likely to log a net loss of roughly 8 billion yen
for the year ending in March -- its fourth straight loss -- due
to 20 billion yen in impairment charges after closing its plasma
panel production lines, the Nikkei added. [ID:nT202036]

-- Sumco Corp (3436.T: Quote, Profile, Research), Sumco Techxiv Corp 5977.T

Silicon wafer maker Sumco on Thursday posted a 66 percent
gain in annual operating profit on robust demand for 300mm wafers
used to make microchips, but it warned of a bigger profit slide
than expected for the current business year.

The world's No. 2 wafer maker behind Shin-Etsu Chemical Co
Ltd (4063.T: Quote, Profile, Research) also said it would buy back up to 30 billion yen of
its own shares and make 51 percent-owned Sumco Techxiv a wholly
owned unit in a 34 billion yen deal. [ID:nT219860]

-- Canon Inc (7751.T: Quote, Profile, Research)

Canon plans to significantly boost output of low-cost digital
cameras and laser printers in China and Vietnam to meet growing
demand in emerging markets, the Nikkei business daily reported on
Friday.

The company plans to double output capacity of digital
cameras at a factory in Guangdong to 10 million units a year by
2009. It will achieve this by retooling part of an existing
facility that makes printers, the newspaper said.

-- Suruga Bank (8358.T: Quote, Profile, Research),

Regional lender Suruga Bank said on Thursday it had slapped
International Business Machines Corp (IBM.N: Quote, Profile, Research) with a $107 million
lawsuit, saying the technology giant failed to properly deliver
on a computer deal. [ID:nT222176]

-- Toyota Tsusho Corp (8015.T: Quote, Profile, Research)

Trading house Toyota Tsusho said on Thursday a subsidiary had
acquired a 7.5 percent stake in the WA-294-P block in waters off
Australia from stakeholders Woodside Energy Ltd and BHP Billiton
Petroleum (North West Shelf) Pty Ltd. [ID:nT208388]

-- Nisshin Steel (5407.T: Quote, Profile, Research)

Spanish stainless steel maker Acerinox (ACX.MC: Quote, Profile, Research) said on
Thursday it would build a $1.5 billion plant in Malaysia with
Japan's Nisshin Steel to help it compete in the fast-growing
Asian market.

-- Acca Networks Co (3764.Q: Quote, Profile, Research)

Trading house Mitsui & Co (8031.T: Quote, Profile, Research) plans to ext the shrinking
ADSL Internet market by selling its 10.3 percent stake in Acca
Networks, the Nikkei business daily reported on Friday.

Mitsui will sell its stake as part of a buyback Acca plans to
conduct in off-floor trading on Friday at 150,000 yen a share,
the newspaper said.
(Reporting by Aiko Hayashi; Editing by Hugh Lawson)