Nikkei set to rise on Fed rate comments, Toyota eyed

                                
 (Adds Denso, Nintendo, Elpida to stocks to watch list)
                                
 TOKYO, Feb 25 (Reuters) - Japan's Nikkei average is likely to
gain on Thursday after U.S. Federal Reserve Chairman Ben Bernanke
said interest rates would remain at very low levels for a long
time, boosting global stocks.
                                
 Toyota Motor Corp <7203.T> <TM.N> will continue to be in the
spotlight after Toyota chief Akio Toyoda apologised to consumers
and pledged reforms to sceptical lawmakers at U.S. congressional
hearings. Toyota's U.S. listed shares jumped 3.9 percent.
[ID:nN24146527] [ADR/]
                                
 "The market will likely gain ground, helped by advances in
U.S. stocks after testimony by Bernanke calmed investors," said
Kazuhiro Takahashi, general manager at Daiwa Securities Capital
Markets.
                                
 "But investors will likely keep gains in check as they
continue to examine the outlook for the economy. They also still
don't know what kinds of results Toyota's hearings will bring
about in the end."
                                
 Japan's benchmark Nikkei <.N225> is set for a slightly higher
start after Nikkei futures traded in Chicago <2NKc1> closed at
10,240, up 0.4 percent from the Osaka close <JNIc1>.
                                
 It is likely to move between 10,200 and 10,350 on Thursday,
market players said. The index fell 1.5 percent the previous day
to 10,198.83.
                                
 The Dow Jones industrial average <.DJI> gained 0.9 percent,
while the Standard & Poor's 500 Index <.SPX> rose 1 percent.
                                
 Bernanke told Congress on Wednesday a weak job market and
tame inflation warrant low interest rates for "an extended
period," dampening speculation a policy tightening might be
nearing. [ID:nN23153536]
                                
 Shares of banks, which have benefited from borrowing rates at
historic lows, such as Bank of America <BAC.N>, led the U.S.
market higher. [.N]
                                
 European shares also closed higher on Wednesday, with banks
gaining, after Bernanke's comment. [.EU]
----------------------MARKET SNAPSHOT @ 2245 GMT ------------
                                
                 INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500             <.SPX>       1105.24      0.97%    10.640
USD/JPY             <JPY=>       90.19         0.1%     0.090
10-YR US TSY YLD    <US10YT=RR>  3.6928          --     0.004
SPOT GOLD           <XAU=>       1094.7      -0.23%    -2.550
US CRUDE            <CLc1>       80.21        0.26%     0.000
DOW JONES           <.DJI>       10374.16     0.89%     91.75
-------------------------------------------------------------
> Wall St rises on the promise of more cheap money    [.N]
> Dollar falls on Bernanke's comments, housing data [USD/]
> Prices steady as auction offsets Bernanke remarks  [US/]
> Gold drops below $1,100/oz as US data disappoints [GOL/]
> Oil rises after Fed's Bernanke pledges low rates   [O/R]
                                
 STOCKS TO WATCH
                                
 -- Denso Corp <6902.T>, Tokai Rika <6995.T>
                                
 The FBI has raided three Detroit-area Japanese auto parts
makers for a sealed federal antitrust investigation, including
Toyota Motor Corp <7203.T> <TM.N> suppliers Denso Corp and Tokai
Rika, authorities said on Wednesday. [ID:nN24125603]
                                
 -- Elpida <6665.T>
                                
 Japanese chip maker Elpida Memory Inc  plans to list its
Taiwanese unit Rexchip Electronics on the Taiwan stock exchange
in the second half of the next financial year ending March 2011,
the Nikkei business daily reported. [ID:nTOE61N098]
                                
 -- Nintendo Co Ltd <7974.OS>
                                
 Nintendo will bring its latest dual-screen handheld video
game system to the United States at the end of March, the company
said on Wednesday.
                                
 The Nintendo DSi XL will go on sale in the U.S. on March 28
for $189.99. The device features larger screens than the DS
models currently on the market. [ID:nN24118605]
                                
 -- Fuji Electric Holdings Co <6504.T>
                                
 General Electric Co <GE.N> aims to enter the Japanese
smart-grid market by developing and manufacturing smart power
meters in Japan jointly with Fuji Electric Holdings, the Nikkei
business daily reported.
                                
 -- Astellas Pharma <4503.T>
                                
 Swiss biotech Basilea <BSLN.S> struck a licensing deal with
Japan's Astellas Pharma, bringing in an upfront payment of 75
million Swiss francs ($70 million) to help ease funding concerns.
[ID:nLDE61N0GN]
                                
 -- Inpex Corp <1605.T>, other resource shares
                                
 Oil rose $1 to $80 a barrel on Wednesday as comments from
U.S. Federal Reserve Chairman Ben Bernanke reaffirming his
commitment to keeping interest rates low outweighed a report
showing a build in U.S. crude stockpiles. [O/R]
                                
 -- JFE Steel Co <5411.T>
                                
 JFE Steel's incoming president on Wednesday attacked BHP
Billiton's <BHP.AX> moves to adopt a pricing system that better
reflects spot trades, saying a shift would hurt the global
economy and make it hard for miners to raise funds.
[ID:nTOE61N06I]
 (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)