Nikkei set to edge up after rise in U.S. shares

TOKYO Nov 18 (Reuters) - Japan's benchmark Nikkei share average is seen likely to edge higher on Wednesday, drawing support from a rise in U.S. equities to 13-month highs and the yen's dip from a one-month high against the dollar.

One stock to watch is Tokyo Tatemono Co (8804.T), which said on Tuesday it plans to raise as much as $512 millionin a global share offering to repay debt and fund new investments. [ID:nT208866]

The Nikkei .N225 is likely to begin the day slightly higher, said Toshiyuki Kanayama, a market analyst for Monex Inc.

"It will probably start in positive territory but people may give up and start selling if its upward momentum seems limited," Kanayama said, adding that the Nikkei is likely to move in a range of 9,650 to 9,800.

A fall to below 9,628.67 on an intraday basis would take the Nikkei to its lowest level in about four months.

Nikkei futures traded in Chicago 2NKc1 finished at 9,775 compared with the Osaka close of 9,740 JNIc1.

The yen stood at 89.32 JPY= to the dollar, having pulled back from a one-month high of 88.73 yen hit on trading platform EBS on Tuesday.

A stronger yen dismays investors as it curbs exporters' profits when they are repatriated.

U.S. stocks rose to fresh 13-month highs on Tuesday as upbeat broker views on improving prospects for two Dow components offset disappointing holiday spending outlooks from Target and Home Depot. [US/]

Japanese shares have been left behind in this year's rally in global equities.

Japan's broader Topix index .TOPX has fallen 0.3 percent on the year, a particularly lacklustre performance given that the U.S. S&P 500 has climbed roughly 23 percent .SPX so far this year. Factors such as worries over the policies of Japan's new Democratic Party-led government, a flurry of equity financing, and concerns about the impact of the dollar's weakness on Japanese exporters have cast a pall over Japanese equities, market players say. ---------------------MARKET SNAPSHOT @ 2302 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1110.32 0.09% 1.020 USD/JPY JPY= 89.31 0.08% 0.070 10-YR US TSY YLD US10YT=RR 3.3232 -- 0.000 SPOT GOLD XAU= 1140.75 -0.07% -0.750 US CRUDE CLc1 79.33 0.24% 0.190 DOW JONES .DJI 10437.42 0.29% 30.46 ------------------------------------------------------------- >Wall St gains on broker views, but retailers sink [.N] >Dollar gains as market weighs Bernanke comments [USD/] >Weak production figures aid bonds [US/] >Gold ends a shade higher despite dollar's strength [GOL/] >Oil rises above $79, eyes product demand [O/R] STOCKS TO WATCH

-- Ministop Co (9946.T)

Ministop Co, Japan's fifth-largest convenience store, plans to bid for South Korea's Buy The Way, which has been put up for sale by private equity firm Unitas Capital, three sources familiar with the matter said. [ID:nT218823]

-- Sawai Pharmaceutical (4555.T)

Japan's No.1 generic drug maker Sawai Pharmaceutical aims to lift its share of the growing domestic market despite competition from bigger foreign players and a headwind from government price plans, its president said on Tuesday. [ID:nT17005] (Reporting by Masayuki Kitano; Editing by Michael Watson)