Nikkei set to gain as yen helps, jobs data eyed

TOKYO, Jan 8 (Reuters) - Japan's Nikkei average is likely to
rise on Friday, with shares of exporters helped by a weaker yen,
but gains may be limited on investor caution before a three-day
weekend and U.S jobs data due later in the day.

Seven & I Holdings (3382.T) may draw attention after Japan's
largest retailer posted a 25 percent drop in quarterly operating
profit as a weak economy prompted shoppers to rein in spending,
and kept its annual outlook for an 11 percent fall.
[ID:nTOE606080]

"Overseas stocks ended mixed, but the yen is weakening and
that is positive for the stock market here," said Yutaka Miura, a
senior technical analyst at Mizuho Securities.

"But investors will likely be prone to close positions ahead
of a three-day weekend and the jobs data as the data could become
a turning point for future trade."

Nikkei futures traded in Chicago 2NKc1 closed at 10,805, up
1 percent from the Osaka close JNIc1, pointing to a higher
start.

The benchmark Nikkei .N225 is likely to move between 10,600
and 10,800, market players said. It slipped 0.5 percent the
previous day to 10,681.66.

The yen hit a four-month low versus the dollar after Japan's
new finance minister on Thursday said he wanted the yen to weaken
more. The yen was trading around 93.60 JPY= in early Asia
trade. [ID:nTOE60607E]

Investors welcome a weaker yen as it boosts exporters'
profits when repatriated.

The Dow and the S&P 500 rose on Thursday after Bank of
America (BAC.N) and General Electric (GE.N) rallied on positive
broker comments, but the Nasdaq inched down 0.1 percent.

Investors will focus on U.S. non-farm payrolls data due out
on Friday to wait for trading direction. The latest Reuters poll
suggests the U.S. economy stopped shedding jobs in December. [.N]
----------------------MARKET SNAPSHOT @ 2310 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1141.69 0.4% 4.550
USD/JPY JPY= 93.49 0.24% 0.220
10-YR US TSY YLD US10YT=RR 3.8274 -- 0.000
SPOT GOLD XAU= 1129.5 -0.17% -1.900
US CRUDE CLc1 82.79 0.16% 0.130
DOW JONES .DJI 10606.86 0.31% 33.18
-------------------------------------------------------------
> Dow, S&P advance on BofA, GE; Friday's jobs eyed [.N]
> Dollar rises broadly ahead of jobs data, yen falls [USD/]
> TREASURIES-Prices steady in wait for jobs report [US/]
> Gold retreats, PGMs hit highs on ETF news [GOL/]
> Oil falls from 15-month high on China, dollar [O/R]

STOCKS TO WATCH

-- Elpida Memory Inc 6665.T, chipmakers

Earnings at chipmakers are recovering rapidly thanks to
growing demand for high-tech products around the world, with
Elpida Memory expected to enjoy its first operating profit in
three years, the Nikkei business daily reported.

Semiconductor prices have gone up on strong demand stemming
from brisk sales of energy-efficient flat-panel televisions and
low-priced personal computers, the paper said.

-- Sony Corp (6758.T)

Sony said U.S. electronics sales are looking positive after
the holiday season, and that it was optimistic about meeting its
full-year target for PlayStation 3 video game console sales.
[ID:nN07199517]

-- Mitsui & Co (8031.T)

Trading house Mitsui is set to take part in a project near
Mexico City to build and operate the world's largest water
treatment plant, the Nikkei business daily reported.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)