Nikkei set to rise; Chile quake may hurt metal stocks

TOKYO, March 1 (Reuters) - Japan's Nikkei average is likely
to rise on Monday after U.S. stocks rose on better-than-expected
growth data, though metal and resource shares may face pressure
after Saturday's massive earthquake that hit Chile, the world's
No. 1 copper producer.

The 8.8-magnitude quake, one of the world's most powerful in
a century, killed more than 700 and has dealt a serious blow to
infrastructure in one of Latin America's most stable economies.
[ID:nN28210286] [ID:nCHILE]

Japan's benchmark Nikkei .N225 is poised for a higher open
after Nikkei futures traded in Chicago 2NKc1 closed at 10,160,
up 0.6 percent from the Osaka close JNIc1.

"The market will likely start higher after slight gains in
U.S. stocks and due to a weaker yen," said Kazuhiro Takahashi,
general manager at Daiwa Securities Capital Markets.

"But shares of nonferrous metal firms and resource firms such
as trading houses may be negatively impacted after the quake
although the actual impact is still unknown. Machinery stocks may
be bought as usual (after quakes) but that may be due more to the
yen today."

The Nikkei is likely to move between 10,000 and 10,300 on
Monday, market players said. It rose 0.2 percent on Friday to
10,126.03.

The index was almost unchanged on the week last week, while
it shed 0.7 percent for the month of February.

The Standard & Poor's 500 Index .SPX rose 0.1 percent on
Friday, after data showing the U.S. economy grew slightly more
than initially thought in the fourth quarter.

Still, a surprisingly sharp drop in existing home sales in
January and weak consumer sentiment in February underscored the
uneven nature of the economic recovery. [.N] [ID:nN26169261]
----------------------MARKET SNAPSHOT @ 2253 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1104.49 0.14% 1.550
USD/JPY JPY= 88.94 0.11% 0.100
10-YR US TSY YLD US10YT=RR 3.6192 -- 0.000
SPOT GOLD XAU= 1116.2 0.00% 0.000
US CRUDE CLc1 79.66 0.00% 1.490
DOW JONES .DJI 10325.26 0.04% 4.23
-------------------------------------------------------------
> Best month since Nov in lackluster day for Wall St [.N]
> Dollar falls vs euro on talk of aid to Greece [USD/]
> Prices rise as data casts doubt on recovery [US/]
> Gold rises toward $1,120; up 2 pct in February [GOL/]
> Oil jumps nearly 2 pct on economic data, dollar [O/R]

STOCKS TO WATCH

-- Nippon Oil Corp 5001.T

Talks between Iraq and a Japanese group led by Nippon Oil
Corp 5001.T to develop the Nassiriya oilfield have reached a
"dead end", the head of Iraq's South Oil Co. said on Sunday.
[ID:nLDE61R0AH]

-- Toyota Motor Corp (7203.T)

Toyota said its president would hold a news conference in
Beijing on Monday as the automaker looks to limit the damage from
a massive global recall on the fast-growing Chinese market.
[ID:nTOE61R01G]

Separately, Canada will call Toyota executives to testify on
the safety of the company's vehicles before a special
parliamentary committee, a government lawmaker said on Friday.
[ID:nN26105828]

-- Toshiba Corp (6502.T)

U.S. flash memory maker and Toshiba rival SanDisk Corp
(SNDK.O) raised its revenue forecast for the first quarter and
said the outlook for the industry in the coming years is strong.
[ID:nN26219612]
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)