Nikkei seen range-bound in cautious trade; Aiful eyed

TOKYO, Sept 18 (Reuters) - Tokyo's Nikkei average is expected
to move narrowly on Friday after U.S. stocks took a breather
following a rally, with trade also seen cautious ahead of a
five-day holiday in Japan.

Aiful Corp (8515.T) will likely draw attention after the
Nikkei business daily reported the Japanese consumer lender plans
to ask Sumitomo Trust and Banking Co 8403.T and other banks to
suspend repayments on about 290 billion yen ($3.2 billion) in
debt to next March.

"Trade will likely be mixed ahead of the five-day holiday and
as we approach the end of the second quarter here," said Hiroichi
Nishi, general manager of equity marketing at Nikko Cordial
Securities.

"There are also concerns about comments by some of the new
government officials, though the new government just took power
and as a whole we need about three months to examine its
direction."

Shizuka Kamei, the new minister for banking and market
regulation, has said he would like to introduce a moratorium on
some loan repayments to help small and midsize businesses and
individuals struggling from the economic downturn, sending bank
shares lower. [ID:nT284678]

Nikkei futures traded in Chicago 2NKc1 closed at 10,455 on
Thursday, up 0.7 percent from the Osaka close JNIc1.

The benchmark Nikkei .N225 is likely to move between 10,350
and 10,500 on Friday, Nishi said. It gained 1.7 percent the
previous day to end at 10,443.80, a one-week closing high.

Japanese markets will be closed in a five-day holiday period
from Sept. 19-23.

U.S. stocks slipped on Thursday after a three-day runup on
concern recent gains were overextended despite the latest round
of solid economic data.
----------------------MARKET SNAPSHOT @ 2311 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1065.49 -0.31% -3.270
USD/JPY JPY= 91.15 0.13% 0.120
10-YR US TSY YLD US10YT=RR 3.3836 -- 0.000
SPOT GOLD XAU= 1013.4 0.19% 1.950
US CRUDE CLc1 72.23 -0.33% -0.240
DOW JONES .DJI 9783.92 -0.08% -7.79
-------------------------------------------------------------
> Wall St edges down after three-day run higher [.N]
> US dollar falls to near 12-month low against euro [USD/]
> Bonds resume upward march after mixed US data [US/]
> Gold eases from 18-month high on profit taking [GOL/]
> Oil slips slightly, eyes weak equities [O/R]
STOCKS TO WATCH

-- Toyota Motor Corp (7203.T)

Toyota is preparing a $1 billion marketing campaign to boost
flagging U.S. sales, expanding hybrid models under the Prius name
and allowing its dealers more room to keep pricing competitive.
[ID:nN17231412]

-- Japan Airlines 9205.T (JAL), All Nippon Airways
(9202.T).

Japan needs to maintain its two major airlines, the country's
new transport minister Seiji Maehara said on Thursday, referring
to Japan Airlines and All Nippon Airways.

He also said JAL must not be allowed to fail, indicating the
state would support the loss-making carrier as it seeks fresh
funding for a drastic cost-cutting plan. [ID:nT46199]

-- Shionogi & Co (4507.T)

Shionogi aims to launch its experimental influenza treatment
peramivir in Japan by September or October next year, and expects
annual sales of at least 5 billion yen ($54.93 million), its
chief executive said. [ID:nT30691]

-- Jeans Mate Corp (7448.T)

The apparel retailer cut its full-year outlook and said it
now expects a 390 million yen operating loss for the year ending
in February next year, in a sharp swing from a 20 million yen
profit in the previous estimate, hit by a flooding of cheap jeans
from rivals such as Fast Retailing (9983.T) and Aeon Co Ltd
(8267.T).
($1=91.02 Yen)
(Reporting by Aiko Hayashi; Editing by Michael Watson)