Japan stocks seen up on yen, revised Bear offer

TOKYO, March 25 (Reuters) - Japanese stocks are expected to
advance on Tuesday, led by exporters such as Canon Inc (7751.T: Quote, Profile, Research)
on a softer yen and after a raised buyout offer for Bear Stearns
BSC.N improved investor confidence on Wall Street.

One notable stock may be Nippon Steel Corp (5401.T: Quote, Profile, Research) after the
Nikkei business daily reported the world's second-largest
steelmaker plans to spend 500 to 600 billion yen ($5 to $6
billion) to build a steel factory in Brazil. [ID:nT331093]

"The higher buyout offer for Bear and the
better-than-expected home sales data buoyed the U.S. market, and
that will also be positive for Japanese stocks," said Hiroichi
Nishi, general manager of equity marketing at Nikko Cordial
Securities.

"I expect to see active buying of stocks, including exporters
that will be helped by the yen trading above 100 yen against the
dollar and 150 yen against the euro."

Nikkei futures traded in Chicago 2NKc1 ended Monday at
12,685, which was 275 points above their close in Osaka, pointing
to a higher opening.

The Nikkei ended down 0.02 percent at 12,480.09 on Monday.

U.S. stocks rang up big gains after JPMorgan Chase & Co
(JPM.N: Quote, Profile, Research) lifted its offer for Bear Stearns to $10 a share from $2,
helping alleviate concerns that other investment banking shares
could tumble.
----------------------MARKET SNAPSHOT @ 2258 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1349.88 1.53% 20.370
USD/JPY <JPY=> 100.71 0.09% 0.090
10-YR US TSY YLD <US10YT=RR> 3.5582 -- 0.000
SPOT GOLD <XAU=> 912.4 -0.25% -2.300
US CRUDE CLc1 100.1 -0.75% -0.760
DOW JONES .DJI 12548.64 1.52% 187.32
-------------------------------------------------------------
> Wall St soars on revised Bear offer, home sales [.N]
> Home sales, Bear Stearns news lift dollar [USD/]
> Bonds plunge as Fed efforts seen steadying economy [US/]
> Gold capped in Asia as dlr gains ground [GOL/]
> Oil slides further on dollar, demand worries [O/R]
STOCKS TO WATCH

-- Millea Holdings Inc (8766.T: Quote, Profile, Research)

Millea Holdings, Japan's largest nonlife insurer, said on
Monday it would cancel 20 million shares worth about 74 billion
yen.

The cancellation, which will take place on March 31, is
equivalent to 2.4 percent of Millea's shares outstanding.
[ID:nT336633]

-- Mitsui Fudosan Co (8801.T: Quote, Profile, Research) and other property firms

Japanese land prices rose for a second straight year in 2007
on robust demand for prime commercial property, government data
showed on Monday, but analysts say the honeymoon is already over
with the market hit hard by tighter credit conditions.
[ID:nT351756]

-- Sharp Corp (6753.T: Quote, Profile, Research), Fuyo General Lease Co (8424.T: Quote, Profile, Research)

Sharp said on Monday it would sell a 65 percent stake in its
leasing unit to Fuyo General Lease for 31.2 billion yen on April
1 as the Japanese electronics maker invests heavily in
flat-screen TV and solar cell capacity. [ID:nT351596]

-- Mitsui & Co (8031.T: Quote, Profile, Research)

Trading house Mitsui & Co will participate in a more than 400
billion yen power and water desalination project in Qatar through
a local joint venture, the Nikkei business daily reported on
Tuesday.

Mitsui and a Belgian unit of French conglomerate Suez will
each take a 20 percent stake in the joint venture, with state-run
Qatar Petroleum and others holding the rest, the paper said.
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)