Japan's Nikkei set to slip on yen; Toyota in focus

TOKYO, Feb 8 (Reuters) - Japan's Nikkei average is likely to
fall on Monday, with exporters seen hurt by a stronger yen and
after U.S. stocks ended almost unchanged pressured by mixed
signals from the U.S. labour market and growing anxiety over
fiscal problems in Europe.

Toyota Motor Corp (7203.T) will be in focus after its
president apologized on Friday for safety problems and said the
automaker would bring in outside experts to review quality
controls. [ID:nN05230773]

Investors were relieved that Toyota finally announced
concrete steps to deal with the quality crisis, sending
U.S.-listed shares of the company (TM.N) higher by more than 4
percent in active trade. [ADR/]

But in a sign that its recall woes continue, a dealer said on
Sunday that Toyota has decided to recall its new Prius hybrid in
Japan to fix a braking software glitch. [ID:nSGE61600A]

"The market will likely start lower and then be range-bound,"
said Hiroichi Nishi, general manager of equity marketing at Nikko
Cordial Securities.

"There are fiscal problems in Europe, growing uncertainty
about the outlook for the global economy and increasing signs of
adjustments in the global stock markets."

Nikkei futures in Chicago 2NKc1 closed at 9,995, down 0.6
percent from the Osaka close 2JNIc1, pointing to a lower start.

The benchmark Nikkei .N225 is likely to move between 9,900
and 10,050 on Monday, market players said. It shed 2.9 percent on
Friday to 10,057.09.

The U.S. dollar and yen gained on Friday as persistent
worries about the euro zone's fiscal stability, particularly in
countries like Greece and Portugal, pushed investors further away
from riskier assets.

The dollar was slightly lower against the yen at 89.19 yen
JPY=, while the euro fell to around 121.76 yen EURJPY=.
Investors fret about the stronger yen as it eats into exporters'
profits when they are repatriated. [FRX/]

Data on Friday showed U.S. employers unexpectedly cut 20,000
jobs in January, but the unemployment rate dropped to a
five-month low of 9.7 percent. [ID:nN04115255]

The Standard & Poor's 500 Index .SPX ended up 0.3 percent
after choppy trade.

Japanese companies set to report results later in the day
include Sumitomo Mitsui Financial Group (8316.T), Square Enix
Holdings Co (9684.T) and Asahi Breweries (2502.T).
----------------------MARKET SNAPSHOT @ 2303 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1066.19 0.29% 3.080
USD/JPY JPY= 89.17 -0.37% -0.330
10-YR US TSY YLD US10YT=RR 3.5712 -- 0.000
SPOT GOLD XAU= 1067.75 0.21% 2.200
US CRUDE CLc1 71.85 0.93% 0.660
DOW JONES .DJI 10012.23 0.10% 10.05
-------------------------------------------------------------
> Wall St cuts losses, closes up with techs, materials [.N]
> U.S. dollar, yen gain on Europe debt woes [USD/]
> U.S. government debt rises in flight to quality [US/]
> Gold hits 3-month low on economic uncertainties [GOL/]
> Oil hits 7-week low in record volume trade [O/R]

STOCKS TO WATCH

-- Panasonic Corp (6752.T)

Panasonic said its quarterly profit jumped more than
threefold to the highest level in five quarters as it cut costs
and enjoyed robust TV sales, and the electronics maker lifted its
outlook to beat market expectations. [ID:nTOE61105Y]

-- Suzuki Motor Corp (7269.T)

Suzuki, Japan's fourth-biggest carmaker, tripled its
quarterly operating profit as sales soared in its main Indian
market, and lifted its annual forecasts closer to market
expectations. [ID:nTOE61405F]

-- Yamaha Motor Co Ltd (7272.T)

Yamaha said on Friday that it is likely to post a deeper loss
than expected for 2009 as it books an additional 30.3 billion yen
($339.3 million) in restructuring charges to cope with a slow
recovery in demand for its motorcycles in developed countries.
[ID:nTOE61406E]

-- Japan Airlines Corp 9205.T

Japan Airlines will keep its partnership with American
Airlines AMR.N in the Oneworld alliance and end talks with
Delta Air Lines (DAL.N) and the rival SkyTeam group, the Asahi
newspaper reported. [ID:nTOE616012]

-- Konica Minolta Holdings Inc (4902.T)

Konica Minolta said on Friday it would begin selling organic
solar cells in three years, taking aim at growing demand for
renewable energy sources and posing a threat to existing solar
cell makers such as Sharp Corp (6753.T) and First Solar Inc
(FSLR.O). [ID:nTOE61404F]
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)