Nikkei set to move narrowly, eyes on yen and data

TOKYO, Nov 11 (Reuters) - Japan's Nikkei average is expected
to edge up on Wednesday after the Dow eked out a new 13-month
high, but exporters and tech shares are likely to be weaker due
to the yen's continued strength, limiting gains.

Machinery orders for September and forecasts for
October-December, due out just prior to the opening, could
provide direction, as could Chinese economic activity indicators
due at 0200 GMT.

Struggling Japan Airlines Corp (9205.T) likely posted an
operating loss of more than 90 billion yen ($1 billion) in the
April-September first half, the Nikkei business daily said.
[ID:nBNG509104]

Japan's government said on Tuesday it was considering
legislation to cut the pensions of JAL retirees and would use
loans from a state bank to keep it operating while it seeks its
fourth bailout since 2001. [ID:nT287070]
"Resistance for the Nikkei is solidifying at 10,000, with a
lot of selling pressure above that, and the dollar's seeming
inability to recover to 90 yen will likely make exporters and
tech shares weak today," said Yutaka Miura, a senior technical
analyst at Mizuho Securities.

"There aren't a lot of strong trading factors right now and
volume is low, so breaking above 10,000 anytime soon will be
difficult."

The dollar was flat against the yen at 89.80 yen JPY= after
the greenback bounced off a 15-month low against a basket of
currencies on Tuesday. Investors fret about a stronger yen as it
eats into exporter profits when repatriated.

The Dow industrials .DJI eked out a new 13-month high,
though the Nasdaq .IXIC and S&P 500 .SPX edged lower, after
cautious statements on the economic outlook by several Fed
officials underscored the belief that an easy monetary policy
will remain intact well into next year. [ID:nN10315173]

The benchmark Nikkei .N225 is likely to move between 9,750
and 9,950 on Wednesday, market players said. It closed at
9,870.73 on Tuesday.

In a sign the market may start higher, Nikkei futures traded
in Chicago 2NKc1 closed at 9,950, up 0.8 percent from the Osaka
close JNIc1.
----------------------MARKET SNAPSHOT @ 2254 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1093.01 -0.01% -0.070
USD/JPY JPY= 89.78 -0.03% -0.030
10-YR US TSY YLD US10YT=RR 3.4781 -- -0.006
SPOT GOLD XAU= 1105.5 0.02% 0.200
US CRUDE CLc1 79.05 0.00% 0.000
DOW JONES .DJI 10246.97 0.20% 20.03
-------------------------------------------------------------
> Wall St rally stalls but Dow ekes out gain [.N]
> Dollar moves off 15-month low but still vulnerable [USD/]
> Prices steady after 10Y note sale [US/]
> Gold rises slightly, near record high [GOL/]
> Oil falls on Ida recovery, stronger dollar [O/R]
STOCKS TO WATCH

-- Japan Tobacco (2914.T)

Japan Tobacco said on Tuesday that chances of its drug
division making steady profits could depend on the success of its
experimental dyslipidemia drug licensed to Roche (ROG.VX).
[ID:nT297626]

-- Astellas Pharma (4503.T)

Astellas, Japan's No.2 drugmaker, said on Tuesday it will buy
the rights to develop and sell U.S. firm Ironwood
Pharmaceuticals' drug for irritable bowel syndrome in Japan and
other parts of Asia.

-- Aeon Co Ltd (8267.T)

Aeon's struggling women's clothing chain Talbots Inc (TLB.N)
has hired an adviser to help it refinance $224 million in debt,
media reported on Tuesday.

Talbots, majority-owned by Aeon, posted a narrower fiscal
second-quarter loss than expected in September and gave a
third-quarter outlook that exceeded Wall Street forecasts.
[ID:nN09283440]

-- Nippon Kayaku Co Ltd (4272.T)

Nippon Kayaku and Spectrum Pharmaceuticals Inc (SPPI.O)
signed an agreement to develop and market Spectrum's experimental
bladder cancer drug apaziquone in Asia. [ID:nBNG500861].
(Reporting by Elaine Lies)