Nikkei to edge up, but gains limited; eyes on yen

TOKYO, Nov 16 (Reuters) - Japan's Nikkei stock average is
likely to edge higher on Monday after Wall Street gained on hopes
for a good holiday sales season, but a slightly stronger yen may
weigh on exporters such as Canon Inc (7751.T)

Little impact is expected from Japanese July-September gross
domestic product (GDP) data due out shortly before the open
unless it deviates much from expectations, market analysts said.

The median estimate for July-September growth is 0.7 percent
growth. That compares with 0.6 percent growth in April-June,
which was the first growth in five quarters.
"I don't expect there to be any big surprises in GDP.
Everyone knows the first half of the year was good and that there
are uncertainties ahead," said Yutaka Miura, senior technical
analyst at Mizuho Securities.

"The GDP figures are unlikely to be the basis for either
active buying or active selling."

In the United States, good results from Walt Disney Co
(DIS.N) and retailer Abercrombie & Fitch (ANF.N), and an upbeat
view from JC Penney Co Inc (JCP.N), helped led Wall Street
higher. But in Tokyo, fundraising news may dominate.

One stock in focus may be Hitachi Ltd (6501.T), Japan's
biggest electronics firm by revenues. Sources familiar with the
matter said Hitachi plans to raise up to 400 billion yen ($4.5
billion) by issuing new shares and convertible bonds to shore up
its battered capital base. [ID:nT23766]

Another is Mitsubishi UFJ Financial Group (8306.T), Japan's
largest bank, which three sources said will issue about $11
billion in new shares to meet stricter capital requirements and
boost lending in Asia. [ID:nBNG152533]

Though market players will keep an eye on the movements of
the yen against the dollar, as well as the direction of Nikkei
futures, activity is likely to be dominated by share-specific
factors rather than sector-wide ones.

The benchmark Nikkei .N225 is likely to move between 9,700
and 9,900. It closed at 9,770.31 on Friday to finish its third
straight negative week.

In a sign the market may open higher, Nikkei futures traded
in Chicago 2NKc1 closed at 9,785, up 0.4 percent from the Osaka
close JNIc1.
----------------------MARKET SNAPSHOT @ 2246 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1093.48 0.57% 6.240
USD/JPY JPY= 89.57 0.06% 0.050
10-YR US TSY YLD US10YT=RR 3.4233 -- 0.000
SPOT GOLD XAU= 1117.9 -0.05% -0.600
US CRUDE CLc1 76.35 0.00% -0.590
DOW JONES .DJI 10270.47 0.72% 73.00
-------------------------------------------------------------
> Wall St gains on retail hopes, Disney results [.N]
> US dollar falls broadly as data spurs growth fears [USD/]
> Debt prices steady as equities offset data [US/]
> Gold rises, near record high as dollar drops [GOL/]
> Oil falls on high inventories, weak demand [O/R]
STOCKS TO WATCH

-- Mizuho Financial Group (8411.T), Sumitomo Mitsui Financial
Group (8316.T)

Mizuho Financial's first profit in five quarters and rival
Sumitomo Mitsui's doubling of profit signal Japan's major banks
are recovering from the economic crisis, albeit slowly.
[ID:nSP42968]

-- Honda Motor Co (7267.T)

Honda will halt output of motorcycles in Spain at the end of
March reflecting a steep downturn in Europe, with bike output in
Europe to move to Italy, the Nikkei business daily said on
Sunday. [ID:nT15365]

-- Japan Airlines (9205.T)

JAL recorded its fourth straight quarterly loss on Friday
amid sliding demand and applied for a debt moratorium with its
main banks as it seeks its fourth state bailout since 2001.
[ID:nT82365]

-- Idemitsu Kosan Co (5019.T)

Idemitsu, Japan's third-largest refiner, said on Friday it
would buy British oil Explorer Petro Summit Investment UK Ltd, a
subsidiary of Japanese traing house Sumitomo Corp (8053.T)

-- Matsumotokiyoshi Holdings (3088.T), Midoriyakuhin Co
(2718.Q)

Matsumotokiyoshi said it will launch a 1.56 billion yen
tender offer for a majority stake in Midoriyakuhin, offering
80,000 yen per Midoriyakuhin share. It will then acquire all
remaining shares in Midoriyakuhin through a share swap.
(Reporting by Elaine Lies)