Nikkei set to advance on yen, U.S. earnings optimism

TOKYO (Reuters) - Japan's Nikkei average is likely to climb on Thursday, with exporters seen higher on a weaker yen and after results from Intel Corp (INTC.O) lifted hopes for a rebound in technology spending and boosted Wall Street.

Toyota Motor Corp (7203.T) and Mazda Motor Corp (7261.T) are in focus after the Nikkei business daily said Toyota plans to supply core components for hybrid vehicles to smaller rival Mazda.

Nikkei futures traded in Chicago jumped 3.1 percent from their Osaka close of 9,290, pointing to a higher start.

"The market's expected gains are likely to be led by technology shares, thanks to the weakening yen," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

Shares of Japanese chip-related stocks such as Advantest Corp (6857.T) had made some modest gains on Wednesday in the wake of Intel's results, but the benchmark Nikkei .N225 ended the day flat as investors grew cautious ahead of more earnings results.

"Japanese exporters have likely set their currency assumptions at around 94.85 yen against the dollar and if it nears that level, earnings hopes for those companies will be further heightened," Nishi said.

In early Asia trade, the dollar was flat and moving around 94.19 yen. <FRX/>

Market players expect the Nikkei average to trade between 9,350 and 9,550 on Thursday. It ended the previous day flat at 9,269.25.

On Wednesday, the Standard & Poor's 500 Index .SPX gained 3 percent. Intel's quarterly results and outlook blew past Wall Street forecasts on better-than-expected consumer demand for PCs, especially in Asia.

($1=94.20 Yen)

(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)