Nikkei set to gain after US jobs data, yen to help

TOKYO, June 8 (Reuters) - Japan's Nikkei average is likely to
rise on Monday, buoyed by exporter shares on a weaker yen and
optimism about a recovery for the U.S. economy after data showed
the United States shed fewer jobs than expected in May.

Toyota Motor Corp (7203.T) may be in focus after the Nikkei
business daily said on Sunday that Toyota, the world's biggest
automaker, is targeting 100 billion yen ($1.1 billion) in cost
cuts for compact car production. [ID:nT22129]

The U.S. Labor Department reported on Friday employers cut
345,000 jobs in May -- substantially less than analysts had
forecast -- but the U.S. unemployment rate hit 9.4 percent, its
highest since 1983. [ID:nN05274048]

U.S. stocks flip-flopped throughout Friday's session, with
the major indexes ending split as investors paused to consider
conflicting signals in the jobs data. [.N]

"Although U.S. stocks ended mixed after the jobs data,
growing hopes for a U.S. economic recovery and the weakening yen
against the dollar are positive factors for Japanese stocks,"
said Kazuhiro Takahashi, general manager at Daiwa Securities
SMBC.

"But once the Nikkei trades above 9,800, investors will
likely take a wait-and see stance to see whether the yen will
further weaken against the dollar and as some U.S. stocks such as
chipmakers slid on Friday."

Nikkei futures traded in Chicago 2NKc1 ended Friday trade
at 9,885, up 1.1 percent from the Osaka close JNIc1, pointing
to a higher start.

Market participants expect the benchmark Nikkei .N225 to
move between 9,700 and 9,900 on Monday. It rose 1 percent on
Friday to end at 9,768.01, its highest close since early October.
The index gained 2.6 percent on the week.
----------------------MARKET SNAPSHOT @ 2259 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 940.09 -0.25% -2.370
USD/JPY JPY= 98.76 0.19% 0.190
10-YR US TSY YLD US10YT=RR 3.8398 -- 0.000
SPOT GOLD XAU= 952.5 -0.29% -2.800
US CRUDE CLc1 67.85 -0.86% -0.590
DOW JONES .DJI 8763.13 0.15% 12.89
-------------------------------------------------------------
> Wall St ends mixed after U.S. jobless rate jumps [.N]
> Dollar gains, cheered by U.S. jobs report [USD/]
> Bonds tumble as jobs data ignite rate-hike fear [US/]
> Gold falls toward $950/oz on dollar rally [GOL/]
> Oil falls after touching 7-month high over $70 [O/R]
STOCKS TO WATCH

-- Advantest Corp (6857.T), Tokyo Electron Ltd (8035.T),
other chip-related shares

Intel Corp (INTC.O), the world's top chip maker slid on
Friday after an industry group forecast a steep drop in global
chip sales. [ID:nBNG480632] The Philadelphia semiconductor index
.SOXX dropped nearly 2 percent.

-- JGC Corp (1963.T)

Plant engineering firm JGC has won a 150 billion yen ($1.5
billion) order for a natural gas project in Algeria, the Nikkei
business daily reported on Monday.

-- Tokyo Electric Power Co (TEPCO) (9501.T)

Steam leaked from part of a pump carrying water to the No. 7
nuclear reactor in the quake-hit Kashiwazaki-Kariwa nuclear plant
in northern Japan run by TEPCO on Saturday, but the leak was soon
fixed, Kyodo news agency said. [ID:nT9768]

-- Iwataya Co Ltd 8246.FU

Retailer Isetan Mitsukoshi Holdings (3099.T) may launch a
tender offer for the 49 percent stake it does not already own in
department store Iwataya as early as next month, the Nikkei said
on Saturday. Iwataya is listed on the Fukuoka stock exchange.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)