Nikkei likely to trade narrowly, eyes on earnings

                                
 (Adds Tokyo Steel in paragraph 2)
                                
 TOKYO, April 13 (Reuters) - Japan's Nikkei average is set to
trade narrowly on Tuesday, remaining firm after the Dow
industrials hit their highest close in 19 months on expectations
of solid earnings but with profit-taking likely to limit gains.
                                
 Tokyo Steel <5423.T> is likely to draw attention after the
Nikkei business daily said Japan's biggest maker of construction
steel, will raise production to 180,000 tonnes in April, up 20
percent from March, in respond to a rebound in steel demand
throughout Asia. [ID:nSGE63B0LN]
                                
 Market players said the benchmark Nikkei <.N225> would be
range-bound ahead of a number of big events, including an
earnings report by tech bellwether Intel Corp <INTC.O> later on
Tuesday.
                                
 "There will continue to be some concern about overheating in
the market but demand overall isn't bad," said Kenichi Hirano,
operating officer at Tachibana Securities.
                                
 "Still, at this point the market lacks strong reasons to
either buy or sell."
                                
 The Dow <.DJI> closed at 11,005.97, its highest close since
September 2008. Other U.S. stock indexes also rose on
expectations of good earnings, though some in the market said
further rises might be difficult without significant positive
surprises.
                                
 After the bell, aluminium company Alcoa Inc <AA.N> kicked off
the U.S. earnings reporting period by posting a narrower
first-quarter loss and matching analysts' consensus view.
[ID:nN12201885]
                                
 In a sign of underlying optimism about the market's near-term
prospects, the CBOE Volatility Index <.VIX>, a popular measure of
investor fear, hit its lowest close since July 19, 2007.
                                
 The Nikkei is likely to move between 11,150 and 11,350,
market players said. It closed at 11,251.90 on Monday.
                                
 In a sign the market may open higher, Nikkei futures traded
in Chicago <2NKc1> closed at 11,295,  up 0.3 percent from the
Osaka close <JNIc1>.
> Dow tops 11,000 on profit bets; Alcoa in line   [.N]
> Euro gains on Greek aid, but downtrend intact [USD/]
> Safe-haven bonds rise on earnings trepidation  [US/]
> Gold flat despite euro gains; lacks demand    [GOL/]
> Oil falls as demand, inventories weigh         [O/R]
                                
 STOCKS TO WATCH
                                
 -- Sanyo Electric Co <6764.T>
                                
 Sanyo's operating profit is likely to jump 50 percent to more
than 45 billion yen in the year ending March 2011, aided by the
sales network of its parent company, Panasonic Corp <6752.T>, the
Nikkei business daily said. [ID:nSGE63B0LM]
                                
 -- Sumitomo Corp <8053.T>
                                
 The Nikkei business daily said the trading house plans to
wholly acquire its joint venture in Australia with the Canadian
grain giant Viterra Inc <VT.TO> for 5 billion yen ($54 million)
[ID:nSGE63B0LZ]
                                
 -- Mitsui Chemicals Inc <4183.T>
                                
 Mitsui Chemicals said it shut its 455,000 tonnes per year
Osaka naphtha cracker on Sunday for an inspection after a
suspected oil leak. [ID:nTOE63B08H]
(Reporting by Elaine Lies; Editing by Edwina Gibbs)