Nikkei set to climb, supported by earnings and yen

TOKYO, July 31 (Reuters) - Japan's Nikkei stock average is
set to climb on Friday, supported by positive sentiment after a
slew of solid corporate earnings results and a weaker yen, which
will likely bolster exporters such as Canon Inc (7751.T).

One share in the spotlight is likely to be Sony Corp
(6758.T), which on Thursday posted a smaller-than-expected
quarterly loss, helped by an improvement in its struggling flat
TV business, and said it was aiming to beat its official forecast
and at least break even for the full year. [ID:nT140138]

"Earnings for the April-June quarter have been stronger than
expected and there have been a fair number of upward forecast
revisions, all of which is improving sentiment and keeping the
market supported," said Yumi Nishimura, deputy general manager at
the investment advisory section of Daiwa Securities SMBC.

"But given that key U.S. indicators such as employment data
are due out next week, rises will not be unchecked. Expect some
profit-taking at the highs."

Other market analysts noted that while the Nikkei, which
closed at its highest level since early October on Thursday, is
marking nearly 10-month highs, a number of blue-chip shares have
yet to match its gains -- a situation likely to spark buying.

U.S. stocks rose on Thursday, boosted by solid corporate
profit reports, a drop in the number of Americans on jobless
benefits, and a surge in commodities prices.

The benchmark Nikkei .N225 is likely to move between 10,100
and 10,400, market analysts said. It closed at 10,165.21 on
Thursday, just under a nearly 10-month high marked on Monday.

In a sign the Nikkei is set to rise, Nikkei futures traded in
Chicago 2NKc1 rose 1.4 percent from the Osaka close of 10,200
JNIc1
----------------------MARKET SNAPSHOT @ 2247 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 986.75 1.19% 11.600
USD/JPY JPY= 95.52 -0.04% -0.040
10-YR US TSY YLD US10YT=RR 3.6152 -- 0.000
SPOT GOLD XAU= 933.85 0.06% 0.550
US CRUDE CLc1 66.59 -0.52% -0.340
DOW JONES .DJI 9154.46 0.92% 83.74
-------------------------------------------------------------
> Wall St climbs on ernings, but Disney off late [.N]
> Dollar slides as oil, stocks rally cuts haven deman [USD/]
> Long-date bonds rise as auction offers relief [US/]
> Gold rises as oil, stocks rally; dollar softens [GOL/]
> Oil jumps 5 pct, economic data raises recovery hope [O/R]
STOCKS TO WATCH

-- Sumitomo Mitsui Financial Group (8316.T)

Sumitomo Mitsui Financial Group and two other Japanese banks
returned to quarterly profit, buoyed by a slowly improving
economy, a signal the worst may be over for Tokyo's struggling
lenders.

Sumitomo Mitsui, Japan's third-largest bank by assets, and
smaller rivals Sumitomo Trust and Banking 8403.T and Shinsei
Bank (8303.T) have been helped by a stock market recovery and
government stimulus to limit a surge in bankruptcies.
[ID:nT321705]

-- Fujitsu Ltd (6702.T)

Fujitsu, Japan's biggest IT services company, reported a
smaller-than-expected quarterly loss thanks to cost cuts and
better microchip sales, and nudged up its annual outlook for a
bigger profit. [ID:nT326629]

-- Mitsui Fudosan Co (8801.T)

Mitsui Fudosan, Japan's largest developer, reported a 32
percent rise in quarterly profit helped by a solid performance in
apartment sales and by its lease business. [ID:nT3219]

-- Nintendo Co Ltd (7974.OS)

Nintendo reported a 66 percent fall in quarterly operating
profit on slowing demand for its Wii videogame console and a
stronger yen, and stuck to its full-year forecast for a decline
of 12 percent. [ID:nT269596]
(Reporting by Elaine Lies; Editing by Chris Gallagher)