Nikkei to rise after Wall St rebound, eyes on yen

TOKYO, Nov 10 (Reuters) - Japan's Nikkei average is expected
to rise on Tuesday after the Group of 20 pledged to keep aid
flowing to the world economy, pushing the Dow to a 13-month high,
but gains will be limited if the yen rises against the dollar.

Toshiba Corp (6502.T) may be in focus after it made an offer
for French nuclear reactor builder Areva's (CEPFi.PA) power
transmission and distribution business in a consortium with
investment fund Innovation Network Corp of Japan [ID:nL9491217]
[ID:nL9177274]

Tokyo market players said that while shares are set for a
rebound, gains will be mostly in reaction to Wall Street's rise
and inhibited by worries about the yen's advance on the dollar.

"The reason for the Wall Street rise, the G20 stance, was
already out during our time yesterday and didn't push shares all
that much higher, so this won't be a factor today," said Hiroichi
Nishi, general manager at the equity division of Nikko Cordial
Securities.

"Japanese stocks have fallen behind and are now in a buying
zone, but the money flowing in is mostly short-term and there's
not a lot of energy in the market."

The dollar was flat against the yen at just under 90 yen
JPY=, and Nishi said any sustained falls below 90 yen were
likely to inhibit rises in the Nikkei.

Chipmakers are likely to do well after their U.S. peers rose
sharply, with the PHLX semiconductor index .SOXX up 3.2 percent
for its largest increase in a month, while resource-linked shares
will gain after oil rose more than 2 percent. [.N] [O/R]

The benchmark Nikkei .N225 is likely to move between 9,850
and 10,000, though its rises may be limited to 9,950 should the
dollar lose much ground, market players said. It closed at
9,808.99 on Monday.

In a sign the market will start higher, Nikkei futures traded
in Chicago 2Nkc1 closed at 10,010, up 2.1 percent from the
Osaka close JNIc1.
----------------------MARKET SNAPSHOT @ 2257 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1093.08 2.22% 23.780
USD/JPY JPY= 89.95 -0.01% -0.010
10-YR US TSY YLD US10YT=RR 3.4838 -- -0.017
SPOT GOLD XAU= 1101.9 -0.18% -1.950
US CRUDE CLc1 79.43 0.00% 0.000
DOW JONES .DJI 10226.94 2.03% 203.52
-------------------------------------------------------------
> Dow hits 2009 high in rally on bigger risk appetite [.N]
> Dollar falls after G20; U.S. rates seen on hold [USD/]
> Prices steady to higher after upbeat auction [US/]
> Gold hits record above $1,110/oz as dollar slides [GOL/]
> Oil up $2 as Ida shuts 30 pct Gulf of Mexico output [O/R]
STOCKS TO WATCH

-- Rohm Co (6963.OS)

Specialty chipmaker Rohm cut its annual net profit outlook by
40 percent to below analysts' forecasts, citing weak demand for
its components used in telecom and audio equipment and in cars.
[ID:nT240301]

-- Nippon Telegraph and Telephone Corp (9432.T) (NTT)

NTT on Monday reported a first-half operating profit of
around 647 billion yen ($7.19 billion), a fall of 13.2 percent
from the previous year, and maintained its forecast for 1.1
trillion in operating profit for the full year.

-- Honda Motor Co (7267.T), Nissan Motor (7201.T)

Honda and Nissan are going to slim down production of car
models for the domestic market in favour of cars aimed at
overseas markets, the Nikkei business daily said, with Honda to
halt production of a sportscar and minivan, and Nissan to stop
production of two minivan models.

-- Inpex (1605.T)

Oil and gas field developer Inpex may rise after oil rose
more than 2 percent on Monday after Topical Storm Ida forced a
halt to 30 percent of oil production in the Gulf of Mexico,
cutting supplies to the world's largest energy consumer.
(Reporting by Elaine Lies; Editing by Michael Watson)