Japan stocks seen down on economic, credit worry

TOKYO, Feb 15 (Reuters) - Japanese stocks are seen down on
Friday on renewed worry about the U.S. economy after the Federal
Reserve chairman acknowledged the outlook has worsened and a bond
insurer's ratings were slashed, reviving credit fears.

One stock to watch is Daikin Industries Ltd (6367.T: Quote, Profile, Research), Japan's
biggest air conditioner maker, which reported a 76.2 percent rise
in operating profit for April-December on strong growth in
overseas sales, including those in China.

Fed chairman Ben Bernanke painted a sombre picture of a U.S.
economy facing risks of both slow growth and inflation in
testimony to Congress, setting off a Wall Street slide that
picked up steam after Moody's downgraded bond insurer FGIC,
raising the possibility of more asset writedowns by banks and
funds holding securities.

Swiss bank UBS (UBSN.VX: Quote, Profile, Research) revealed tens of billions of dollars
in risky debt exposure [ID:nL14686448], adding to the renewed
credit worries.

"Although both the U.S. and Japan had surprisingly good
indicators out this week, if you look at the actual contents they
weren't really that good," said Yutaka Miura, a senior technical
analyst at Shinko Securities.

"Add in Bernanke, the ratings cut and UBS, and it's clear
that the subprime worries are still there."

Shares that rose sharply on Thursday, when the Nikkei average
scored its biggest one-day percentage gain in six years, are
likely to fall on Friday, with selling of high-techs especially
heavy after their U.S. peers slid. Support may come from
environment-related shares after oil prices rose.

The Nikkei .N225 is seen moving between 13,300 to 13,700.
It closed at 13,626.45 on Thursday.

Nikkei futures traded in Chicago 2NKc1 closed at 13,450
compared to the Osaka close of 13,630 JNIc1.
----------------------MARKET SNAPSHOT @ 2302 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1348.86 -1.34% -18.350
USD/JPY <JPY=> 107.84 -0% 0.000
10-YR US TSY YLD <US10YT=RR> 3.8221 -- 0.000
SPOT GOLD <XAU=> 908 -0.06% -0.500
US CRUDE CLc1 95.33 -0.14% -0.130
DOW JONES .DJI 12376.98 -1.40% -175.26
-------------------------------------------------------------
> US STOCKS-Shares fall sharply on credit market worry [.N]
> Dollar dips as Bernanke cites growth risks [USD/]
> Bonds fall on inflation risk from Fed rate cuts [US/]
> Supply woes raise platinum to record $2,025 [GOL]
> Oil surges on supply worries, economic data [O/R]
STOCKS TO WATCH

-- Daikin Industries Ltd (6367.T: Quote, Profile, Research)

Japan's biggest air conditioner maker reported a 76.2 percent
increase in its April-December operating profit on strong growth
in overseas sales, including those in China, where it saw demand
expand for its industrial air conditioners in areas beyond major
cities.

Its nine-month operating profit was 103.6 billion yen ($960.6
million), helped by contribution from Malaysian unit OYL
Industries.

-- Hakuhodo DY Holdings Inc (2433.T: Quote, Profile, Research)

Japan's second-largest advertising agency said on Thursday it
would pay 5.4 billion yen ($50 million) for a 1 percent stake in
unlisted Recruit Co, a major magazine and staffing firm.

The two companies will work together on marketing and
information services, it said in a statement.

-- Millea Holdings (8766.T: Quote, Profile, Research) and other insurers

U.S. ratings agency Moody's downgraded bond insurer FGIC,
renewing credit worries.

-- Tokyo Electron (8035.T: Quote, Profile, Research) and other high-tech shares.

Tech shares in the U.S. fell, hurt partly by news that
Goldman Sachs had removed Intel Corp (INTC.O: Quote, Profile, Research) from a list of its
top picks and graphics chip maker NVIDIA Corp (NVDA.O: Quote, Profile, Research) reported
weaker margins.

-- GungHo Online Entertainment Inc (3765.OJ: Quote, Profile, Research)

GungHo Online said on Thursday it would take a 52.4 percent
stake in South Korean game maker Gravity Co Ltd (GRVY.O: Quote, Profile, Research) to boost
its development and marketing strength. [ID:nT324262]

-- Japan Airlines Corp (9205.T: Quote, Profile, Research)

Japan Airlines Corp has lined up 14 companies to buy the
roughly 150 billion yen worth of preferred stock it has been
planning to issue to bolster its financial health, the Nikkei
business daily reported on Friday.
(Reporting by Elaine Lies, Editing by Michael Watson)