(Adds details)
TOKYO, Jan 14 (Reuters) -Japan's Nikkei average is expected
to open higher on Friday on rises in tech shares thanks to brisk
earnings results from Intel Corp, but gains may be limited by
weak earnings results from domestic retailer Fast Retailing.
Prime Minister Naoto Kan was set to reshuffle his cabinet on
Friday, appointing fiscal hawk Kaoru Yosano as economics minister
but market partipants said the reshuffle was unlikely to have an
impact on the day's trade.
The January settlement of Nikkei 225 options is also in focus
although not expected to have a big effect on the market.
"Fast Retailing may have a big downside impact, therefore the
Nikkei index may turn negative at some point after faring well in
early trade," said Yutaka Miura, senior technical analyst at
Mizuho Securities.
"Also, investors may not be willing to hold large buy
positions over the weekend due to short-term overheating."
Intel Corp's <INTC.O> revenue and margin forecasts beat
expectations on healthy technology spending, but Fast Retailing
Co <9983.T>, one of the largest components of the Nikkei
benchmark on a weighted basis, said first-quarter operating
profit fell 18.4 percent.
Shares in the world's largest chipmaker gained 2.7 percent in
late trade.
"If the dollar is back above 83 yen during the day, more
buying in electronics stocks may be seen," said Hiroichi Nishi,
general manager at Nikko Cordial Securities.
"Some exporters may rise on receding worries about the euro."
Easing recent worries about the credit crisis in Europe,
Spain and Italy followed Portugal with successful debt sales on
Thursday.
Analysts say the Nikkei 225 stock average <> is expected
to move in a range of 10,500-10,650 after ending up 0.7 percent
at 10,589.76 on Thursday, its highest close in eight months.
Immediate resistance looms at 10,638.23, a high hit in May last
year.
Nikkei futures traded in Chicago <2NKc1> closed at 10,565, up
5 points from 10,560 in Osaka <JNIc1>.
The broader Topix <> added 0.9 percent to 937.74.
----------------------MARKET SNAPSHOT @ 2253 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 1283.76 -0.17% -2.200
USD/JPY <JPY=> 82.75 -0.05% -0.040
10-YR US TSY YLD <US10YT=RR> 3.303 -- -0.078
SPOT GOLD <XAU=> 1373.44 0.05% 0.690
US CRUDE <CLc1> 90.99 -0.45% 0.000
DOW JONES <> 11731.90 -0.20% -23.54
-------------------------------------------------------------
> Merck, materials drag Wall St lower, Intel up late []
> Euro surges vs dollar on Trichet; strong momentum []
> US government debt up as Fed buys, auctions end []
> Gold falls after euro zone debt auctions []
> U.S. crude extends losses on economic worries []
STOCKS TO WATCH
--Fast Retailing <9983.T>
The Uniqlo operator said first-quarter operating profit fell
18.4 percent but kept its profit forecast intact for the year to
August, confident it could withstand rising costs while it
grapples with sluggish sales in its home market.
[]
--Toray Industries Inc <3402.T>
Toray decided Thursday on plans to invest around 10 billion
yen to construct a carbon fiber plant in South Korea, the Nikkei
business daily reported.
The plant will be the first overseas carbon fiber production
base set up by a Japanese company in a location outside the U.S.
and Europe. Toray aims to launch operations at the new facility
sometime between the latter half of 2012 and 2013, the daily said.
(Reporting by Ayai Tomisawa; Editing by Edwina Gibbs)
