Nikkei seen lower after rally; election in focus

TOKYO, Aug 27 (Reuters) - Tokyo's Nikkei average is likely to
ease on Thursday from a 10-month closing high hit the previous
day, with investors expected to take a wait-and-see approach
ahead of U.S. economic data and Japan's Aug. 30 election.

"Investors will likely want to lock in profits after the
market booked new highs," said Hiroichi Nishi, general manager at
Nikko Cordial Securities.

"The market has factored in a landslide victory by the
Democratic Party, but it wants to wait and see what the party
will do after the election."

Nissan Motor Co (7201.T) may draw attention after the
automaker said it and Chrysler Group LLC have abandoned
vehicle-supply projects announced last year that would have
provided Nissan with a Chrysler-produced pickup truck.
[ID:nN26282488]

Market participants expect the benchmark Nikkei .N225 to
move between 10,500 and 10,650 on Thursday. It rose 1.4 percent
the previous day to 10,639.71, its highest close since Oct. 3.

Nikkei futures traded in Chicago 2NKc1 closed at 10,640 on
Wednesday, unchanged from the Osaka close JNIc1.

Japan's opposition Democratic Party leads Prime Minister Taro
Aso's Liberal Democratic Party in newspaper polls ahead of the
election. An opposition victory would end more than five decades
of almost continuous rule by the LDP and raise the chances of
breaking a stalemate in a divided parliament. [ID:POLJP]

U.S. stocks .SPX were little changed on Wednesday despite
solid reports on new home sales and durable goods orders as
investors stayed cautious after a rally. [.N]

The United States will announced revised estimates of the
second quarter economic growth later in the day. [ID:nLL503360]
----------------------MARKET SNAPSHOT @ 2305 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1028.12 0.01% 0.120
USD/JPY JPY= 94.15 -0.06% -0.060
10-YR US TSY YLD US10YT=RR 3.4347 -- 0.000
SPOT GOLD XAU= 944.75 0.07% 0.650
US CRUDE CLc1 71.64 0.29% 0.210
DOW JONES .DJI 9543.52 0.04% 4.23
-------------------------------------------------------------
> Wall St ends flat; caution lingers after rally [.N]
> Dollar gains as risk trade takes a breather [USD/]
> Solid bond auction beats summer doldrums [US/]
> Gold ends slightly lower as dollar jumps [GOL/]
> Oil falls on rising U.S. stockpiles [O/R]

STOCKS TO WATCH

-- Sojitz (2768.T)

Venezuela's labor ministry declared on Wednesday a lockout of
unionized workers at a plant that assembles Mitsubishi Motors
Corp (7211.T) and Hyundai Motor Co (005380.KS) vehicles illegal
and ordered the factory to resume operations.

Assembler Sojitz shut down its plant in eastern Venezuela
indefinitely on Monday citing workers' "indiscipline and anarchy"
that has sharply cut productivity at the factory. [ID:nN262604]

-- Toyota (7203.T), other automakers

Toyota is recalling about 95,700 Toyota and Scion vehicles
sold in the United States because ice could accumulate on their
braking systems and make it harder for drivers to slow down.
[ID:nN26274958]

Separately, preliminary sales figures showed that Japanese
and South Korean automakers registered the biggest market share
gains in the U.S. government's "cash for clunkers" program that
ended this week. [ID:nN26266317]

-- Dainippon Sumitomo Pharma Co Ltd (4506.T)

Dainippon Sumitomo Pharma said its experimental schizophrenia
drug, lurasidone, was significantly better than placebo in a
pivotal late-stage clinical trial, according to data released on
Wednesday. [ID:nT149380]

-- Fujitsu Ltd (6702.T)

IT firm Fujitsu said on Wednesday it was cutting up to 1,200
jobs in the UK in response to lower-than-anticipated revenues.
[ID:nWLA1928]

-- Isetan Mitsukoshi Holdings Ltd (3099.T)

Department store operator Mitsukoshi Ltd aims to cut 1,000
jobs, or about 20 percent of its workforce, by boosting its
voluntary retirement program, the Nikkei business daily said
citing company executives.

The company's Isetan Mitsukoshi Holdings Ltd unit, which is
Japan's largest department store chain, will pitch the move to
workers early next month and start soliciting retirees, the paper
said. Workers are likely to leave this fiscal year.
[ID:nBNG458250]

-- Nippon Sheet Glass (5202.T)

Stuart Chambers said he will step down as chief executive of
Nippon Sheet Glass to spend more time with his family, after a
stint of a little more than a year as one of the few foreigners
to head a Japanese firm. [ID:nT141855]

-- Tokuyama Corp (4043.T)

Tokuyama, Japan's biggest polysilicon maker, said it plans to
raise up to 49.9 billion yen to build a plant in Malaysia to
supply polysilicon to solar cell makers and to revamp other
lines. [ID:nT146563]
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)