Nikkei seen testing new 8-mth highs

TOKYO, June 2 (Reuters) - Japan's Nikkei stock average is
seen rising to a fresh eight-month high on Tuesday, as U.S.
manufacturing data reinforced hopes that demand will stabilise,
while General Motors' GM.N bankruptcy filing ended uncertainty
about the automaker's fate.

In a sign that the Nikkei is likely to start higher, Nikkei
futures traded in Chicago 2NKc1 rose 1.4 percent from their
Osaka close of 9,690 JNIc1.

The Dow and the S&P 500 each rose 2.6 percent.

"The Nikkei should receive a good lift and test fresh upsides
after seeing U.S. stocks advance. Auto-related shares may see
demand trickle in after lagging shippers and trading houses,"
said Yoku Ihara, a manager at Retela Crea Securities.

Shippers and smelters of non-ferrous metals are expected to
remain in focus after the Baltic Exchange's main sea freight
index .BADI rose for the 21st straight day on Monday and nickel
prices surged to an eight-month high on recovery prospects.

Market participants expect the Nikkei to move between 9,550
and 9,800 on Tuesday. The index ended Monday's trade at 9,677.75,
its highest close since October 7.
----------------------MARKET SNAPSHOT @ 2231 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 942.87 2.58% 23.730
USD/JPY JPY= 96.58 0.05% 0.050
10-YR US TSY YLD US10YT=RR 3.6804 -- 0.000
SPOT GOLD XAU= 972 -0.20% -1.950
US CRUDE CLc1 67.92 -0.96% -0.660
DOW JONES .DJI 8721.44 2.60% 221.11
-------------------------------------------------------------
Wall St jumps on recovery bets and GM; AmEx off late [.N]
US dollar falls to '09 low as riks tolerance rises [USD/]
Wall Street rally, reassuring data hurt bonds [US/]
Gold ends down as dlr cuts losses, eyes $1,000 [GOL/]
Oil jumps 3 pct, factor data spurs recovery hope [O/R]
STOCKS TO WATCH

-- Nippon Paper Group Inc (3893.T)

Nippon Paper said on Monday it has completed the acquisition
of all shares in Paper Australia Pty, a unit of PaperlinX
(PPX.AX).

-- Nomura Real Estate Holdings Inc (3231.T)

Nomura Real Estate said it plans to raise 64 billion yen by
offering new shares as it aims to improve its financial health
and bolster investments in residential business.

Under the plan, Nomura Real Estate will issue 36 million new
shares with an overallotment option of up to 5.4 million shares.
With the overallotment option, the fund raising would lead to a
share dilution of 27.7 percent.

--Konica Minolta (4902.T)

Konica Minolta Holdings aims to shave fixed costs by 33
billion yen ($342.4 million) for the fiscal year through March
2010 by spending less in such areas as personnel and research and
development, the Nikkei business daily reported. [ID:nBNG466987]

(Reporting by Shinichi Saoshiro; Editing by Edwina Gibbs)