Nikkei seen range-bound as earnings awaited

TOKYO, Oct 22 (Reuters) - Japan's Nikkei average is likely to
start lower on Thursday after U.S. stocks slipped in a late
sell-off in financial shares, but trade may be subdued overall as
investors await the upcoming Japanese earnings season.

Honda Motor Co (7267.T) will likely draw attention after the
Nikkei business daily said the automaker will likely post a
first-half operating profit of 60 billion yen ($660 million),
beating its forecast for a loss on cost-cutting and sales of
fuel-efficient cars. [ID:nT229591]

"The market lacks energy and there are few reasons to buy
Japanese stocks, particularly because the new government's
policies have yielded little results so far," said Hiroichi
Nishi, general manager of equity marketing at Nikko Cordial
Securities.

"But at the same time, falls should be limited as the global
economy is on track for a recovery and global stocks are on an
upward trend. Investors also want to see how Japanese earnings
will pan out."

Energy-linked shares such as trading houses may benefit after
oil jumped nearly 3 percent to settle above $81 a barrel on
Wednesday, market players said. [O/R]

Nikkei futures traded in Chicago 2NKc1 closed at 10,270.00
on Wednesday, down 0.6 percent from the Osaka close JNIc1,
pointing to a lower start.

The benchmark Nikkei .N225 is likely to move between 10,200
to 10,300 on Thursday, market players said. It ended flat the
previous day at 10,333.39, after hitting a three-week closing
high on Tuesday.

Japan's earnings season will swing into full gear next week.

The S&P 500 Index .SPX fell 0.9 percent on Wednesday. An
influential bank analyst recommended selling Wells Fargo (WFC.N)
shares, prompting a sell-off in financial shares, and a
wider-than-expected loss from Boeing (BA.N) disappointed
investors. [.N]
----------------------MARKET SNAPSHOT @ 2306 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1081.4 -0.89% -9.660
USD/JPY JPY= 90.93 -0.08% -0.070
10-YR US TSY YLD US10YT=RR 3.3927 -- 0.000
SPOT GOLD XAU= 1057.85 -0.05% -0.500
US CRUDE CLc1 80.81 -0.69% -0.560
DOW JONES .DJI 9949.36 -0.92% -92.12
-------------------------------------------------------------
> Financials slam Wall Street; eBay drops late [.N]
> Sterling gains strongly, euro breaks above $1.50 [USD/]
> Prices fall on worry monetary stimulus will wane [US/]
> Gold rises above $1,060/oz on gains in euro, oil [GOL/]
> Oil rises nearly 3 pct on products draw, equities [O/R]
STOCKS TO WATCH

-- Toshiba Corp (6502.T)

Toshiba is likely to report an operating profit of 1-2
billion yen ($11 million-$22 million) for the April-September
period on cost cuts and robust earnings from its semiconductor
and nuclear power plant businesses, the Nikkei business daily
said. [IDn:T233119]

-- Japan Airlines Corp (JAL) 9205.T

Japan Airlines' net loss may balloon to as much as about 500
billion yen ($5.5 billion) for the year ending in March, as the
struggling carrier plans to book hefty restructuring charges,
Yomiuri newspaper reported on Thursday.

A government-appointed task force crafting a revival plan for
JAL has asked the Development Bank of Japan to provide more than
50 billion yen ($550 million) in debt waivers and debt-for-equity
swaps, the Nikkei reported. [ID:nBNG435423]

-- Itochu Corp (8001.T), Uny Co (8270.T)

Trading house Itochu will obtain a three percent interest in
Uny, the No. 4 Japanese supermarket operator, to enhance product
procurement and distribution efficiency and develop a Chinese
supermarket chain, the Nikkei reported.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)