TOKYO, April 16 (Reuters) – Japan’s Nikkei average is likely
to rise on Thursday, with banking shares expected to gain ground
after Wall Street climbed on several signs that the U.S.
recession could be abating.

NEC Electronics Corp (6723.T) will be in focus after sources
said it and Renesas Technology Corp are in the final stage of
talks on a merger in a bid to survive as sales slump amid global
economic turmoil. [ID:nT223191]

“After a steady performance on Wall Street, Japanese stocks
will likely gain, with financial shares stabilising,” said Yoku
Ihara, manager at Retela Crea Securities.

“The merger news between NEC Electronics and Renesas is also
positive. When there’s a strong leader in an industry, that
promotes efficiency and gradually leads to more strength in
negotiating prices,” he said.

Hope that the economic slump was abating rose after the U.S.
Federal Reserve’s Beige Book indicated the economy continued to
weaken, but the contraction’s speed was fading.

Adding to the upbeat tone, data from American Express (AXP.N)
signaled that the ability of some consumers to pay their bills is
stabilising. [.N]

Nikkei futures traded in Chicago 2NKc1 closed at 8,925 on
Wednesday, 185 points above the Osaka close, pointing to
a higher opening.

Market participants expect the benchmark Nikkei .N225 to
move between 8,700 and 8,900 on Thursday. It fell 1.1 percent the
previous day to end at 8,742.96 for its third consecutive day of
losses — its first such run in nearly two weeks.
———————-MARKET SNAPSHOT @ 2258 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 852.06 1.25% 10.560
USD/JPY JPY 99.24 -0.13% -0.130
10-YR US TSY YLD US10YT=RR 2.768 — 0.000
SPOT GOLD XAU 889.3 -0.15% -1.300
US CRUDE CLc1 49.62 0.75% 0.360
DOW JONES .DJI 8029.62 1.38% 109.44
————————————————————-
> Wall St climbs on signs recession easing [.N]
> Dollar gains as economic concerns persist [USD/]
> Bonds mostly up on economic worries, tame inflation [US/]
> Gold rises in quiet trade as inflation eyed [GOL/]
> Oil falls slightly as stockpiles weigh [O/R]
STOCKS TO WATCH

— Aderans Holdings Co Ltd (8170.T)

The wig maker’s board will approve a tender offer for at
least 33.4 percent of its shares by Unison Capital Inc at a
meeting on Thursday, the Nikkei business daily said.
[ID:nN15509722]

– Takeda Pharmaceutical Co (4502.T)

The drugmaker’s operating profit for the year ended last
month is expected to have fallen 31 percent, the Nikkei business
daily said.

That is an improvement over earlier projections as a delay in
getting drugs, including a key diabetes drug, approved in the
United States led to a decline in market research and promotion
expenses, the paper said.

— Asahi Glass Co Ltd (5201.T)

Asahi Glass said on Wednesday it will end production of auto
glass at one of its three factories in Japan in response to
slumping demand. [ID:nT173168]

— Santen Pharmaceutical Co Ltd (4536.OS)

Santen Pharmaceutical agreed to license to Merck and Co Inc
(MRK.N) its glaucoma and ocular hypertension drug tafluprost, in
a move to help drive global sales of one of Santen’s key
products. [ID:nT186326]
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)