Nikkei set to rise as exporters gain on weaker yen

TOKYO, Feb 2 (Reuters) - Japan's Nikkei average is expected
to rise on Tuesday after better-than-expected economic data and
robust earnings revived bullish sentiment on Wall Street, with
exporters such as Canon Inc (7751.T) up on a weaker yen.

Toyota Motor Corp (7203.T) is likely to stay in the spotlight
after it detailed plans on Monday to fix nearly 4.5 million
vehicles equipped with faulty accelerators in North America and
Europe as lawsuits landed claiming the world's largest automaker
had endangered drivers. [ID:nTOE61007K]

Toyota also said it would restart production of eight models
on Feb. 8 after a planned one-week shutdown at six plants in the
United States and Canada.

Toyota shares traded in the United States (TM.N) closed up
3.8 percent, and market players said it was likely to rise in
Tokyo as well.

"Nikkei shares in Tokyo have fallen enough that investors are
now interested in buying, and while gains are likely to be
limited today the market will take aim at 10,600, which is where
the 25-day moving average comes in," said Kenichi Hirano,
operating officer at Tachibana Securities.

"Like the Nikkei, Wall Street was poised for a bit of a
rebound after its recent losses, and investors used the good data
as an excuse."

The Institute for Supply Management's manufacturing index
showed the sector grew in January at a faster rate than expected,
following similar surveys from China, Australia and the euro
zone. [ID:nN01363414] [ID:nLDE6100W3]

Exxon Mobil (XOM.N), the largest U.S. oil company, reported
quarterly profit that beat Wall Street expectations, sending its
shares higher and boosting the energy sector.

The benchmark Nikkei .N225 is likely to move between 10,200
and 10,350, market players said. It closed at 10,205.02 on
Monday.

In a sign the market will open higher, Nikkei futures traded
in Chicago 2NKc1 closed at 10,315, up 1.2 percent from the
Osaka close JNIc1.
----------------------MARKET SNAPSHOT @ 2302 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1089.19 1.43% 15.320
USD/JPY JPY= 90.69 0.11% 0.100
10-YR US TSY YLD US10YT=RR 3.656 -- 0.000
SPOT GOLD XAU= 1105.35 0.00% 0.050
US CRUDE CLc1 74.98 0.74% 0.550
DOW JONES .DJI 10185.53 1.17% 118.20
-------------------------------------------------------------
> Wall St rallies on ISM manufacturing data, Exxon [.N]
> Dollar climbs vs yen; euro gains after 4-day fall [USD/]
> Bonds stumble as data renew inflation jitters [US/]
> Gold posts biggest daily gains since Nov [GOL/]
> Oil rises over 2 percent on U.S. manufacturing growth [O/R]

STOCKS TO WATCH

-- Cosmo Oil Co Ltd (5007.T)

Cosmo Oil will cut its refining capacity by 80,000 barrels
per day (bpd) from Tuesday, becoming the latest Japanese refiner
to cut production capacity in the face declining demand.
[ID:nTOE61007L]

-- Japan Airlines Corp 9205.T

The new president of Japan Airlines said the bankrupt carrier
has not yet decided whether to stick with partner American
Airlines AMR.N or defect to Delta Air Lines (DAL.N) and its
SkyTeam group. [ID:nTOE610089]

-- Daiichi Sankyo (4568.T)

Daiichi Sankyo said on Monday it has applied to the Health
Ministry for approval of a new influenza drug, CS-8958, that
would be administered as an inhalant and targets both type A and
type B influenza viruses.

It said that in non-clinical studies the drug also was
effective against the H1N1 and H5N1 bird flu viruses.
(Reporting by Elaine Lies; Editing by Michael Watson)