Japanese stocks likely to rise, tracking Wall St

TOKYO, March 19 (Reuters) - Japanese stocks are seen set to
rise on Wednesday, tracking steep gains on Wall Street after
deep interest-rate cut and solid results from two top
investment banks soothed investors spooked by Bear Stearns'
sudden downfall.

One of the stocks in the spotlight is Takeda Pharmaceutical
Co (4502.T: Quote, Profile, Research).

The drug maker is in the final stages of talks with Abbott
Laboratories Inc (ABT.N: Quote, Profile, Research) to buy out Abbot's stake in their
50-50 U.S. joint venture, the Nikkei business daily reported on
Wednesday. [ID:nT7155]

"Lehman averted going down the same fate of Bear (Stearns),
that's what lifted the Wall Street," said Yoku Ihara, manager
of investment information department at Retela Crea Securities.

"But I am not sure whether Wall Street will see a sustained
rally, since yesterday's gains were mostly by investors
reversing their short bet."

Goldman Sachs (GS.N: Quote, Profile, Research) and Lehman Brothers LEH.N posted
lower quarterly earnings, but both topped forecasts, reassuring
investors that bank profits were intact despite the escalating
credit crisis.

Japanese stocks are also likely to be helped by the
dollar's sharp gain against the yen after the Fed's
smaller-than-expected, 75 basis point rate cut, recovering
above 100 mark breached last week. It was traded at 100.28 yen
<JPY=> early on Wednesday.

The Nikkei share average .N225 is expected to move from
12,200 to 12,600. The index rose 1.5 percent to 11,964.16 on
Tuesday.

In a sign of how stocks may move, Nikkei futures traded in
Chicao 2NKc1 finished at 12,460, above 580 points from
Tuesday's Osaka close JNIc1.
----------------------MARKET SNAPSHOT @ 2306 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1330.74 4.24% 54.140
USD/JPY <JPY=> 100.13 0.15% 0.150
10-YR US TSY YLD <US10YT=RR> 3.5035 -- 0.000
SPOT GOLD <XAU=> 983.7 0.22% 2.200
US CRUDE CLc1 108.57 -0.78% -0.850
DOW JONES .DJI 12392.66 3.51% 420.41
-------------------------------------------------------------
> Wall Street rallies as Fed cut, banks drive gains [.N]
> Dollar posts biggest gain vs yen in nine years [USD/]
> US yields rise as stocks rally after Fed rate cut [US/]
> Gold slides after Fed cut but outlook bright [GOL/]
> Oil rebounds over $109 after Fed cuts rates [O/R]

STOCKS TO WATCH

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

Takeda is in the final stages of talks with Abbott
Laboratories Inc (ABT.N: Quote, Profile, Research) to buy out Abbott's stake in their
50-50 U.S. joint venture, the Nikkei business daily reported on
Wednesday. [ID:nT7155]

-- Advantest Corp (6857.T: Quote, Profile, Research), other chip equipment makers

February bookings for Japanese tools used to make
microchips fell from the previous month, outpacing a decline in
sales, as weak memory chip prices hurt semiconductor makers'
appetite for new equipment. [ID:nT303792]

Other semiconductor gear makers include Tokyo Electron Ltd
(8035.T: Quote, Profile, Research), Disco Corp (6146.T: Quote, Profile, Research), Yokogawa Electric Corp (6841.T: Quote, Profile, Research)
and Nikon Corp (7731.T: Quote, Profile, Research).

-- Uny Co Ltd (8270.T: Quote, Profile, Research)

The retailer said on Tuesday that it would likely book an
operating profit of 41.1 billion yen for the year ended Feb.
20, missing its previous forecast for a profit of 42.1 billion
yen.

-- Shimamura Co (8227.T: Quote, Profile, Research)

Discount clothing chain Shimamura is expected to post a
group operating profit of 35 billion yen for the year ended
Feb. 29, missing its earlier forecast of 39.4 billion yen, the
Nikkei business daily reported on Wednesday.

Sales have fallen short of forecast as unfavourable weather
and sluggish consumer spending hit demand for underwear and
other basic items at its signature clothing chain, the
newspaper said.

-- Kentucky Fried Chicken Japan Ltd (9873.T: Quote, Profile, Research)

Kentucky Fried Chicken Japan plans to raise the prices of
major menu items for the first time in 16 years due to higher
costs of meat, flour and other ingredients, the Nikkei business
daily reported on Wednesday.

The price rises will average about 6.8 percent and apply to
half of all the menu items, the newspaper said.

--Orben Inc 4797.T

The Tokyo stock exchange said on Tuesday it would delist
Orben from its Mothers startup market on April 19 for false
disclosure over an equity swap in its acquisition of an
advertising company.

The firm, which offers consulting services to
Internet-realted businesses, had been indicted by a local
prosecutors' office.
(Reporting by Taiga Uranaka; Editing by Tomasz Janowski)