Nikkei set to rise on exporters, relief after Fed

TOKYO, Aug 13 (Reuters) - Japan's Nikkei average is likely to
gain on Thursday, with exporters such as Canon Inc (7751.T) seen
higher after the Federal Reserve suggested the U.S. economy is
through the worst of the recession, lifting Wall Street.

The Fed said the economy was levelling out, and it left
interest rates unchanged at the end of its two-day policy meeting
on Wednesday.

It also said it would extend by one month through October the
duration of a programme to buy long-term government securities
but would not increase the amount of purchases. [ID:nN1272730]

"A sense of relief spread in the market after there were few
surprises in the Fed's closely watched exit strategy, as it will
continue to stick to the current measures for a while," said
Mitsuo Shimizu, deputy general manager at Cosmo Securities.

"The upside might seem heavy, but because the market is
marking new highs, trade is cautious. But basically it the market
continues to have a lot of bullish energy."

The Nikkei futures traded in Chicago 2NKc1 rose 1.1 percent
from the Osaka close of 10,440 JNIc1 on Wednesday, pointing to
a higher start.

Market participants expect the benchmark Nikkei .N225 to
trade between 10,400 and 10,600 on Thursday. It slipped 1.4
percent the previous day to end at 10,435.00 after rising to a
10-month high of 10,587.36 on Tuesday.
----------------------MARKET SNAPSHOT @ 2306 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1005.81 1.15% 11.460
USD/JPY JPY= 96.12 0.04% 0.040
10-YR US TSY YLD US10YT=RR 3.7113 -- 0.000
SPOT GOLD XAU= 947.95 0.20% 1.900
US CRUDE CLc1 70.52 0.51% 0.360
DOW JONES .DJI 9361.61 1.30% 120.16
-------------------------------------------------------------
> Wall Street gains as Fed says economy stabilizing [.N]
> Dollar up vs yen as Fed says it will slow purchases [USD/]
> Fed statement, stock rally hurt bonds [US/]
> Gold stays higher as Fed keeps interest rates low [GOL/]
> Oil rises as optimism outweighs US inventory build [O/R]
STOCKS TO WATCH

-- Train makers; Kawasaki Heavy Industries Ltd (7012.T),
Hitachi Ltd (6501.T)

Vietnam will use Japan's bullet train technology in building
its high-speed railway system connecting Hanoi and the southern
commercial hub of Ho Chi Minh City, the chief of state-owned
Vietnam Railways Corp told the Nikkei business daily in an
interview.

-- Mazda Motor Corp (7261.T)

Mazda could raise its domestic production outlook for
April-September by about 10 percent as stimulus programs in Japan
and abroad boost demand, the Nikkei business daily reported.
[ID:nBNG512955]
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)