Nikkei set to fall on euro zone worries, Toyota eyed

TOKYO, Feb 9 (Reuters) - Japan's Nikkei average is likely to
fall on Tuesday, after the Dow industrials closed below 10,000
for the first time since November hit by heightened concerns
about the euro zone's sovereign debt troubles.

Toyota Motor Corp (7203.T) will continue to be in focus after
it said it was preparing a global recall of its new Prius model,
risking a fresh dent to its battered reputation for quality and
reliability. U.S.-listed shares of the company (TM.N) fell 2.5
percent. [ID:nLDE6171ZU] [ADR/]

"The Nikkei will likely hover around the 10,000 mark after
U.S. stocks fell, though a halt in the yen's advance may help,"
said Kazuhiro Takahashi, general manager at Daiwa Securities
Capital Markets.

"We still don't have a clear idea of what will happen with
the fiscal problems in Europe and the market is concerned that
increased risk-aversion will result in a shrinking of overall
trading activity."

Concerns about the fiscal stability of Greece, Portugal and
Spain have rattled global markets over the last two weeks,
curbing appetite for riskier assets. [.N]

Nikkei futures in Chicago 2NKc1 closed at 9,895, down 0.7
percent from the Osaka close 2JNIc1, pointing to a lower start.

The benchmark Nikkei .N225 is likely to move between 9,800
and 10,050 on Tuesday. It fell 1.1 percent the previous day to
9,951.82 for its first close below 10,000 in two months.

The Dow Jones industrial average .DJI slid 1 percent on
Monday to 9,908.39 as investors sold bank shares due to worries
about the debt problems in Europe.

Japanese companies set to report results later in the day
include Nissan Motor Co (7201.T) and Pioneer Corp (6773.T).
----------------------MARKET SNAPSHOT @ 2259 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1056.74 -0.89% -9.450
USD/JPY JPY= 89.26 -0.03% -0.030
10-YR US TSY YLD US10YT=RR 3.5616 -- -0.010
SPOT GOLD XAU= 1061.9 -0.08% -0.900
US CRUDE CLc1 71.68 -0.29% 0.000
DOW JONES .DJI 9908.39 -1.04% -103.84
-------------------------------------------------------------
> Euro zone debt worries sink Dow below 10,000 [.N]
> U.S. dollar slips, but strong trend remains intact [USD/]
> Bonds edge up ahead of note auction [US/]
> Gold eases on fund liquidation, weak sentiment [GOL/]
> Oil up 1 pct on geopolitics, dollar and cold [O/R]

STOCKS TO WATCH

-- Sumitomo Mitsui Financial Group (8316.T)

Sumitomo Mitsui Financial Group, Japan's third-biggest bank
by assets, outshone its larger rivals and posted its biggest
profit in seven quarters on Monday, helped by an improvement in
its stock portfolio and a decline in bad loans. [ID:nTOE61409O]

-- Nippon Steel Corp (5401.T)

Nippon Steel, the world's second-biggest steelmaker, said
exports could account for over half its 2010-11 output as it aims
to capture growing demand in Asia to offset stagnant domestic
growth. [ID:nLDE6171F9]

-- Toshiba Corp (6502.T), Mitsubishi Heavy Industries Ltd
(7011.T), Hitachi Ltd (6501.T)

The Vietnamese government has decided to award Russia's
state-owned nuclear power company with a contract to build a
nuclear power plant, delivering a blow to a Japanese
public-private partnership that mounted an all-out campaign to
receive the order, the Nikkei business daily said on Tuesday.

Toshiba, Mitsubishi Heavy and Hitachi are the key players on
the Japanese side, which is expected to keep working to win the
order for the second phase, the Nikkei said.

-- Cosmo Oil Co (5007.T)

Cosmo Oil will acquire Japan's fourth-largest wind power
generating company in its first foray into the business, the
Nikkei business daily said on Tuesday.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)