Nikkei set to rise on resource shares, gains limited

TOKYO, Oct 9 (Reuters) - The Nikkei average is likely to rise
on Friday, with resource-related stocks seen extending recent
gains after gold hit a fresh all-time high, but trade may be
cautious ahead of a long weekend in Japan.

Fast Retailing (9983.T) will be in focus after the retailer
forecast a 10.5 percent rise in operating profit this financial
year as its Uniqlo casual clothing chain draws cost-conscious
consumers away from rivals and it aggressively opens new stores
in China. [ID:nT189181]

Investors will also be watching data on Japanese machinery
orders, a key gauge of capital spending ahead, due before the
start of trade. [JPMORD=ECI] ECONJP

"The market will likely start higher after overseas markets
rose and the dollar/yen is managing to stay at the 88 yen level,"
said Yutaka Miura, a senior technical analyst at Mizuho
Securities.

"But the market may move little after a higher start ahead of
the three-day weekend. Moves are likely to be driven by trade in
stock futures."

Japanese markets will be closed on Monday for a national
holiday.

Nikkei futures traded in Chicago 2NKc1 ended Thursday at
9,900, up 0.4 percent from the Osaka close JNIc1, pointing to a
higher open.

The benchmark Nikkei .N225 is likely to move between 9,800
and 9,950 on Friday, market participants said. It rose 0.3
percent the previous day to end at 9,832.47, pulling further away
from an 11-week intraday low of 9,628.67 hit on Tuesday.

The yen was steady around 88.46 yen to the dollar JPY= in
early Asia trade. Many Japanese exporters have set their exchange
rate assumptions for the dollar around 90-95 yen for the current
fiscal year to March.

U.S. stocks edged up on Thursday as a surprising quarterly
profit from Alcoa Inc (AA.N) got third-quarter earnings off to a
strong start, though market players in Tokyo said the Alcoa news
had been factored in during the previous day's trade in Japan.

"Investors seem to think solid earnings are a given, and we
have to be cautious when companies report earnings in line or
below market expectations," Miura said.

Gold XAU= rose to a fresh all-time high for a third
straight day on Thursday as persistent dollar weakness increased
bullion's appeal as a hedge against losses in dollar-denominated
assets.
----------------------MARKET SNAPSHOT @ 2308 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1065.48 0.75% 7.900
USD/JPY JPY= 88.57 0.25% 0.220
10-YR US TSY YLD US10YT=RR 3.2477 -- 0.000
SPOT GOLD XAU= 1051.2 -0.27% -2.800
US CRUDE CLc1 71.33 -0.50% -0.360
DOW JONES .DJI 9786.87 0.63% 61.29
-------------------------------------------------------------
> Wall St gains as Alcoa's profit bolsters optimism [.N]
> Dollar hurt by push to riskier assets; Aussie soars [USD/]
> Bonds fall on poorly received 30-year bond sale [US/]
> Gold rises to record above $1,060/oz on weak dollar [GOL/]
> Oil rises above $71 on recovery hope, weak dollar [O/R]
STOCKS TO WATCH

-- Elpida Memory Inc 6665.T

Elpida Memory said on Friday that its Taiwan unit Rexchip
Electronics Corp turned profitable in July-September on rising
prices of DRAM, logging operating and net profits.
[ID:nTKG006525]

-- NTT DoCoMo Inc (9437.T)

Japan's top wireless operator NTT DoCoMo is easing the pace
of its M&A activity in Asia as it focuses on existing
acquisitions, an executive said. [ID:nT36699]

-- Matsui Securities (8628.T)

The head of Japanese online broker Matsui Securities is "very
pessimistic" about the short-term outlook for Japan's stock
market due to concerns about shrinking liquidity, even though the
Nikkei average has recovered 40 percent from a 26-year low hit in
March. [ID:nT19463]

-- Promise Co 8574.T

Consumer credit lender Promise plans to appoint Vice
President Ken Kubo to president as part of a push to shore up
ties with top shareholder Sumitomo Mitsui Banking Corp, the
Nikkei business daily said. He would replace current president
Hiroki Jinnai, a member of Promise's founding family.

-- Shin-Etsu Chemical Co (4063.T)

Shin-Etsu Chemical will spend 16 billion yen ($181.1 million)
to double production capacity for silicon metal, used to make
semiconductors and solar cells, at a subsidiary in Australia, the
Nikkei business daily said.
($1=88.36 Yen)
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)