Nikkei may edge down, but robust results to support

TOKYO, July 30 (Reuters) - Japan's Nikkei is likely to edge
down on Friday after weak outlooks from U.S. technology companies
and downbeat comments from a Federal Reserve official underlined
concerns about the U.S. economic recovery.

But a wave of robust corporate earnings, including those from
blue-chip exporter Sony Corp (6758.T), is likely to inspire
bargain-hunting at lows, limiting losses, although direction
could change depending on industrial output due out just before
the opening.

U.S. tech firms Nvidia Corp (NVDA.O) and Symantec Corp
(SYMC.O) cut expectations for the next quarter on Thursday,
raising questions about demand for technology components and
contributing to concerns that economic growth is slowing.

"There's some fresh concerns that U.S. economic recovery is
slowing, U.S. shares are close to overbought territory, and
investors may be hesitant to buy in general, given that U.S. GDP
data is due out later in the day and we're at the end of the
month," said Hiroichi Nishi, general manager at the equity
division of Nikko Cordial Securities.

"But bargain-hunting is likely to limit falls."

Wall Street, where all major indexes ended marginally lower,
was also pressured by comments from St. Louis Federal Reserve
bank President James Bullard, who said he is worried about the
risks the United States might fall into a Japan-style quagmire of
falling prices and investment.

Japan's June industrial output data comes out just before the
market opens. A month-on-month rise of 0.2 percent is predicted,
compared to May's 0.1 percent rise.

Eyes will also be on second quarter U.S. gross domestic
product data, which is due out later on Friday, after a number of
weak economic indicators have underlined doubts about the
strength of economic recovery.

In a sign that the benchmark Nikkei .N225 may open lower,
Nikkei futures traded in Chicgo 2NKc1 closed at 9,645, down 0.5
percent from the Osaka close JNIc1.

Market players said the benchmark was likely to trade between
9,550 and 9,700. It closed at 9,696.02 on Thursday, at which
point it had gained more than 3 percent for the month, looking
set to snap a three-month losing streak.

While there are some encouraging short-term chart signals for
the Nikkei, including this week's break above its 25-day moving
average, it now needs to climb above 9,800, a peak in mid-July,
for gains to continue.

Further resistance is likely at 9,932, the Nikkei's closing
low in February. But it still remains in a downtrend below its
200-day moving average, which is currently at 10,200, and support
lies at 9,500, where its 25-day moving average comes in.

Japan's earnings season is hitting its peak, with companies
reporting later on Friday to include top lender Mitsubishi UFJ
Financial Group (8306.T) and Honda Motor Co (7267.T) as well as
major drug makers.
----------------------MARKET SNAPSHOT @ 2259 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1101.53 -0.42% -4.600
USD/JPY JPY= 86.67 -0.25% -0.220
10-YR US TSY YLD US10YT=RR 2.9866 -- 0.000
SPOT GOLD XAU= 1165.9 -0.18% -2.150
US CRUDE CLc1 78.26 -0.13% -0.100
DOW JONES .DJI 10467.16 -0.29% -30.72
-------------------------------------------------------------
> Wall St falls on tech outlook worries [.N]
> Euro breaks above $1.3100 for first time since May [USD/]
> Bonds mostly gain despite soft 7-yr auction [US/]
> U.S. gold ends up on uncertainty; GLD holdings drop [GOL/]
> Oil rises for first time in week as dollar weakens [O/R]

STOCKS TO WATCH

-- Sony Corp (6758.T), Panasonic Corp (6752.T), Sharp Corp
(6753.T)

Sony on Thursday lifted its annual outlook and returned to
profitability in the first quarter on booming demand for its
Bravia flat TVs and PlayStation 3 game consoles.

Rivals Panasonic and Sharp also reported profits for
April-June versus losses a year ago, while Panasonic joined Sony
in upgrading its forecast as both firms cashed in on growing
sales in emerging markets. [ID:nSGE66S0B7]

-- Shinsei Bank (8303.T)

Shinsei on Thursday reported first-quarter profit that topped
its full-year forecast but kept its outlook unchanged, citing
uncertainty about the economy and its consumer finance business.
[ID:nTOE66Q029]

-- Nintendo Co Ltd (7974.OS)

Nintendo posted a 42 percent drop in quarterly operating
profit and kept its annual forecast, hit by slowing demand for
its handheld game device and a stronger yen. [ID:nTOE66S06R]

-- Toshiba Corp (6502.T)

Toshiba posted a fourth consecutive quarterly profit on
Thursday on robust sales of memory chips and kept its full-year
outlook for a doubling of operating profit. [ID:nTOE66S052]

-- Nissan Motor Co (7201.T)

Nissan reported its strongest quarterly operating profit in
more than two years on Thursday as sales surged in China and
other major markets, but it left its cautious guidance unchanged
amid an increasingly murky outlook for demand. [ID:nTOE66R05I]
(Reporting by Elaine Lies; Editing by Joseph Radford)