Nikkei likely to rise, commodities and techs strong

TOKYO, June 5 (Reuters) - Japan's Nikkei stock average is
likely to rise on Friday in the wake of gains on Wall Street,
with resource and tech shares strong after encouraging U.S. data
fed hopes the economic slump is waning.

First-time U.S. jobless claims fell for a third straight week
and the number of people remaining on benefit rolls fell for the
first time since the start of the year. [ID:nN04201550]

Investors are likely to watch Canon Inc (7751.T) after the
Nikkei business daily said the company plans to start
construction of a new digital camera plant in western Japan next
month in the face of rising demand.

But market analysts said rises were likely to be limited
ahead of U.S. jobs data due out later in the day.

"There's a bit of a sense of overheating and we have the jobs
data coming up, so that will limit gains. But volume remains
pretty high so that should help keep the market supported," said
Hiroichi Nishi, general manager at the equity division of Nikko
Cordial Securities.

Resource-linked shares are likely to be strong after their
U.S. peers rose on hopes that surging oil and commodities prices
are a sign of growing demand and an improving economy. Banks are
likely to gain after an upbeat view on U.S. banks boosted
financial shares on Wall Street.

The benchmark Nikkei .N225 is likely to move between 9,650
and 9,850, market analysts said. It closed down at 9,668.96 on
Thursday, snapping a six-day rising streak.

Nikkei futures traded in Chicago 2NKc1 rose 0.7 percent
from the Osaka close of 9,690 JNIc1, pointing to a higher open.

----------------------MARKET SNAPSHOT @ 2246 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 942.46 1.15% 10.700
USD/JPY JPY= 96.63 0.03% 0.030
10-YR US TSY YLD US10YT=RR 3.7157 -- 0.000
SPOT GOLD XAU= 981.15 0.21% 2.050
US CRUDE CLc1 68.74 -0.10% -0.070
DOW JONES .DJI 8750.24 0.86% 74.96
-------------------------------------------------------------
> Financials, surging commodities lift Wall Street [.N]
> Euro rises on ECB rate view; US jobs data looms [USD/]
> Bonds sag on stock gains, inflation worry curbs bid [US/]
> Gold rises as oil rally sparks inflation hedging [GOL/]
> Oil hits 7-month high on hopes for economic recovery [O/R]
STOCKS TO WATCH

-- Mitsubishi Chemical Holdings (4188.T)

Mitsubishi Chemical is expected to post an operating loss of
about 23 billion yen for the April-June quarter on falling demand
for synthetic resin, the Nikkei business daily said.
[ID:nBNG414494]

-- Tokyo Electric Power Co (TEPCO) (9501.T)

TEPCO plans to raise output of the 1,356-megawatt No.7
nuclear unit at its Kashiwazaki-Kariwa plant to full capacity on
Friday as part of a test run, a company spokesman said on
Thursday.

-- Aozora Bank (8304.T)

Japan's securities regulator is investigating at least one
employee at Aozora Bank on suspicion of insider trading, the
midsize lender said on Thursday. [ID:nT67634]

-- Sony Corp (6758.T)

Sony aims to make its LCD television segment profitable by
fiscal 2010, Executive Deputy President Hiroshi Yoshioka told the
Nikkei business daily [ID:nBNG425460]

-- Aeon Co (8267.T)

Aeon will push back to the end of fiscal 2012 its plans to
increase its Chinese supermarket network to 100, the Nikkei
business daily said. [ID:nBNG434759]
(Reporting by Elaine Lies; Editing by Chris Gallagher)