Nikkei set to edge down on growing economic gloom

                                
 (Adds more "stocks to watch" items)
                                
 TOKYO, Sept 4 (Reuters) - Japan's Nikkei stock average is
likely to edge down on Thursday, with Mitsubishi Corp <8058.T>
and other trading firms hit by low oil prices and tech shares
battered by growing worries about global tech spending.
                                
 One stock to watch will be Mitsubishi UFJ Financial Group
(MUFG) <8306.T> after an executive at Japan's largest bank said
in response to a media report that it has no plans to invest in
U.S. investment bank Lehman Brothers <LEH.N>. [nT164730]
                                
 The Times of London had reported that the core banking unit
of MUFG was poised to enter the bidding for a substantial stake
in Lehman, and may seek control. [ID:nWEN7768]
                                
 "Growing concerns about an economic slowdown as well as
worries about spending are going to weigh on the market today,"
said Yoku Ihara, manager of the investment information department
at Retela Crea Securities.
                                
 Tech and semiconductor shares are likely to be weak after
their U.S. peers were sold, and while bargain-hunting around
12,500 is expected to keep the market supported, substantial
rises are unlikely in the face of growing worries about the
economy.
                                
 The benchmark Nikkei <.N225> is likely to move between 12,500
and 12,750. It closed at 12,689.59 on Wednesday.
                                
 Nikkei futures traded in Chicago <2NKc1> finished at 12,665
compared to Wednesday's Osaka close <JNIc1> of 12,680.
----------------------MARKET SNAPSHOT @ 2251 GMT ------------
                                
                 INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500             <.SPX>       1274.98      -0.2%    -2.600
USD/JPY             <JPY=>       108.29       0.05%     0.050
10-YR US TSY YLD    <US10YT=RR>  3.7027          --     0.000
SPOT GOLD           <XAU=>       801.15       0.11%     0.900
US CRUDE            <CLc1>       109.37       0.02%     0.010
DOW JONES           <.DJI>       11532.88     0.14%     15.96
-------------------------------------------------------------
                                
                                                        >
Global growth worries rattle Wall St; Dow rises       [.N]
> Dollar edges higher as euro zone data disappoints   [USD/]
> Bonds up on growth concerns, easing inflation        [US/]
> Gold trims loss on bargain hunting, physical sales  [GOL/]
> Oil slips on soft demand, Gustav threat passes       [O/R]
                                
 STOCKS TO WATCH
                                
  -- Fast Retailing Co Ltd <9983.T>
                                
 Fast Retailing said on Wednesday it was planning to open its
Uniqlo casual clothing stores in Russia and was also considering
entering the Indian market, part of its efforts to achieve annual
revenue of 1 trillion yen ($9.2 billion) by 2010 as it aims to
become a global apparel giant. [ID:nT156557]              --
                                
 -- Tokio Marine Holdings Inc <8766.T>
                                
 Tokio Marine said on Wednesday it has bought back 3.2 million
of its own shares for 11.5 billion yen ($105.7 million) under its
plan to buy back up to 2.2 percent, or 18.0 million, of its
outstanding shares. [ID:nTFA002996]
                                
 -- Hitachi Metals Ltd <5486.T>
                                
 Hitachi Metals is expected to post a 13 percent rise in group
operating profit to around 30 billion yen for the April-September
first half, beating a previous projection for 28 billion yen, the
Nikkei business daily reported on Thursday.
                                
 A high-performance magnet that accounts for about 20 percent
of the company's group sales enjoyed strong demand for use in
hybrid-car motors. Demand for steel for making tools and rollers
for manufacturing facilities was also strong, the newspaper said.
                                
 -- Toyota Motor Corp <7203.T>
                                
 Toyota is running down inventories of its Tundra pickup and
remains on track to restart production of the truck at its San
Antonio, Texas, plant in early November, an executive said on
Wednesday. [ID:nN03299845]
                                
 -- Sumitomo Corp <8053.T>
                                
 Sumitomo Corp will buy an interest in power generation and
desalination operations in the United Arab Emirates for about 20
billion yen, the Nikkei business daily reported on Wednesday.
                                
 The trading house will hold a 20 percent stake in a power and
water plant, located west of Abu Dhabi, and 50 percent in the
management of the plant, both owned by government-affiliated
investment firm Abu Dhabi National Energy Co.
                                
 -- Honda Motor Co <7267.T>, other carmakers
                                
 Data on August car sales in the U.S. showed that Toyota's
sales fell 9.4 percent and Honda's slid 7.3 percent.
                                
 However, sales for Nissan Motor Co Ltd <7201.T> surprised
investors with a 13.6 percent increase [ID:nN03473967]
                                
 (Reporting by Elaine Lies; editing by Sophie Hardach)