Japanese stocks seen rising, tracking Europe

TOKYO, Feb 19 (Reuters) - Japanese stocks are seen rising on
Tuesday, helped by gains in European shares and a slightly
stronger dollar.

Toshiba Corp (6502.T: Quote, Profile, Research) will again be in the spotlight, with
the Nikkei business daily saying it will announce on Tuesday that
it has decided to immediately stop developing and manufacturing
HD DVD players and recorders and will halt sales of HD DVD
products by the end of the March. [ID:nT357339]

Toshiba, the world's No.2 maker of NAND flash memory, will
also announce plans to build new NAND factories in a bid to
overtake South Korea's Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research),
the paper said.

Shares of Toshiba rose on Monday on news that it was on the
verge of abandoning HD DVD, with Sony Corp (6758.T: Quote, Profile, Research), leader of
the rival Blu-ray camp, also gaining.

Another stock in focus is Nihon Unisys Ltd (8056.T: Quote, Profile, Research).

The information systems developer and India's Infosys
Technologies Ltd (INFY.BO: Quote, Profile, Research) have agreed to tie up in providing
system development and operational outsourcing in Japan, the
Nikkei business daily reported on Tuesday.

"The Tokyo market is likely to be firm today following
Europe," said Mitsuo Shimizu, deputy general manager of equity
department at Cosmo Securities.

European shares rose sharply on Monday led by banks, with the
FTSEurofirst 300 index ending up 2 percent. U.S. markets
were closed for the Presidents' Day holiday.

The benchmark Nikkei average .N225 is seen ranging from
13,550-13,850. It ended at 13,635.40 on Monday.
----------------------MARKET SNAPSHOT @ 2254 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1349.99 0.08% 1.130
USD/JPY <JPY=> 108.1 -0.09% -0.100
10-YR US TSY YLD <US10YT=RR> 3.7647 -- 0.000
SPOT GOLD <XAU=> 905.3 0.00% 0.000
US CRUDE CLc1 95.89 0.41% 0.390
DOW JONES .DJI 12348.21 -0.23% -28.77
-------------------------------------------------------------
> Dollar edges up in holiday-thinned trade [USD/]
> Platinum sets record above $2,100 on tight supply [GOL/]
> Oil rises, buoyed by supply risks, speculators [O/R]
STOCKS TO WATCH

-- Toshiba Corp (6502.T: Quote, Profile, Research), Sony Corp (6758.T: Quote, Profile, Research)

Toshiba is expected to announced on Tuesday that it has
decided to immediately stop developing and manufacturing HD DVD
players and recorders and that it will halt sales of HD DVD
products by the end of the March, the Nikkei business daily
reported. The move will mark the victory of Sony's rival Blu-ray
format.

-- Mitsui Fudosan Co (8801.T: Quote, Profile, Research), Frontier Real Estate
Investment Corp 8964.T

Mitsui Fudosan Co said on Monday it would buy a company that
manages assets for Frontier Real Estate Investment Corp 8964.T
from Japan Tobacco (2914.T: Quote, Profile, Research), the latest deal in Japan's battered
real estate investment trust market. [ID:nT338666]

-- Sharp Corp (6753.T: Quote, Profile, Research), Tokyo Electron Ltd (8035.T: Quote, Profile, Research)

Sharp, fighting to remain the top maker of solar cells, will
develop tools to make solar cells with Tokyo Electron Ltd amid
growing demand for clean energy.

Tokyo Electron said on Monday the two firms will establish a
joint venture to develop production equipment for thin-film solar
cells, which use less silicon than conventional solar cells.
Tokyo Electron will produce and sell the equipment starting in
2009. [ID:nT346140]

-- Takeda Pharmaceutical Co Ltd (4502.T: Quote, Profile, Research)

Takeda said on Monday it and partner Merck KGaA (MRCG.DE: Quote, Profile, Research)
have decided to terminate development of cancer drug matuzumab
[ID:nT352821].

-- Toyota Motor Corp (7203.T: Quote, Profile, Research)

Toyota on Monday took the wraps off its remodelled Crown
sedan, the first car to incorporate the cost-cutting strategy
that the automaker hopes will help it save at least $2.8 billion
a year. [ID:nT49687]

-- Sumitomo Metal Mining Co Ltd (5713.T: Quote, Profile, Research)

Sumitomo Metal Mining said on Monday it was raising the
combined nickel production outlook at two plants in the
Philippines by 10 percent to 22,000 tonnes a year.

Construction costs for a second nickel plant at Coral Bay
Nickel Corp on Palawan Island have been revised up to $307
million from $285 million, Sumitomo Metal said in a statement.
[ID:nT351874]

-- Harakosan Co (8894.OS: Quote, Profile, Research), Nihon Housing Co (4781.T: Quote, Profile, Research)

Condominium developer Harakosan Co said on Monday it planned
to launch a bid in July for up to 66.67 percent of condominium
management firm Nihon Housing, offering 1,000 yen per share, a
300 yen premium to Monday's close of 700 yen.
(Reporting by Taiga Uranaka, Editing by Michael Watson)