Nikkei seen opening steady; Greece bailout deal eyed

TOKYO, Feb 7 (Reuters) - Japan's Nikkei average is
expected to open steady on Tuesday after hitting a three-month
closing high the previous session as a delay in Greece's
response to the painful terms for a new bailout tempered growing
optimism over the U.S. economic outlook.
"The delay in Greece is weighing on markets. Given the
latest headlines, I'm a bit worried that there will be no
agreement tonight. That may prompt market players to lock in
profits, rather than betting on further gains," said Yumi
Nishimura, senior market analyst at Daiwa Securities.
Greece's political leaders delayed their respond to bailout
terms from the European Union and International Monetary Fund,
raising concerns of a chaotic default. The country needs the
funds by March in order to meet debt repayments.
The Nikkei was likely to trade between 8,850 and
8,950, strategists said, while Nikkei futures in Chicago closed at 8,910 on Monday, up 10 points or 0.1 percent
from the Osaka close of 8,900.
On Monday, the Nikkei rallied 1.1 percent to 8,929.20 and
the broader Topix index advanced 1.2 percent to 769.85
after forecast-beating U.S. jobs data raised hopes of stronger
growth in the world's largest economy.
Nishimura said investors would be watching earnings from
Toyota Motor Corp, which are due after the market
close, and construction firms.
"Auto shares have risen quite fast in the past week, so we
could see some profit-taking in Toyota depending on the
outcome," she said.
"Construction firms will also attract attention as the
market has been expecting strong demand due to reconstruction
after the disaster."
Japan's corporate earnings results have been disappointing
so far, with two-third of the 114 Nikkei companies that have
reported failing to meet market expectations, Thomson Reuters
StarMine data showed. That compares with just one-third of S&P
500 companies
However, it has not deterred a rally in Japanese equities,
boosted by a brightening outlook for the United States. The
Topix is up 5.7 percent this year.
With the gains, the Topix carries a 12-month forward
price-to-earnings ratio of 12, a level not seen since early
August, data from Thomson Reuters Datastream showed.

> Wall St edges lower after string of gains
> Euro resilient; Aussie eyes RBA rate decision
> Wall St into defensive stance with more Treasuries
> Gold down on dollar index rise, Greek debt jitters
> Brent crude jumps to 6-month high on Europe cold snap

STOCKS TO WATCH
--JAPAN TOBACCO
The former state monopoly raised its operating profit
forecast to 365 billion yen ($4.77 billion) for the year to
March, up 11 percent from a previous estimate, thanks to
stronger cigarette sales in Japan.
The latest forecast is slightly above an average estimate of
362.1 billion yen in a poll of six analysts by Thomson Reuters.
The firm also raised its annual dividend forecast to 9,000 yen
per share, from a previous estimate of 8,000 yen.
--TOYOTA MOTOR CORP
Japan's top carmaker is expected to report weaker quarterly
earnings on Tuesday, hurt by a stronger yen and recent floods in
auto-making hub Thailand, but investors will be hoping for an
upgrade to its full-year profit guidance.
--KANSAI ELECTRIC POWER CO
The Japanese government hopes the No.3 and No.4 reactors at
Kansai Electric Power Co's Ohi nuclear power plant will resume
operations around April pending local authorities' approval, the
Yomiuri newspaper said on Tuesday, citing several government
sources.