Nikkei set to rise after upbeat U.S. jobs news

TOKYO, Nov 6 (Reuters) - Japan's Nikkei average is expected
to rise on Friday after strong U.S. jobs data reinforced hopes
the economy is recovering, with Advantest Corp (6857.T) and other
chip-linked shares strong in the wake of gains by U.S. peers.

NEC Corp (6701.T), Japan's largest PC maker, plans to raise
up to 150 billion yen ($1.7 billion) in a share offering to shore
up its capital and invest in growth businesses, four sources
familiar with the matter said. [ID:nT151205]

Toyota Motor Corp (7203.T) may also come in for attention
after it announced a surprise quarterly profit and halved its
annual loss forecast, though these may not be enough to convince
investors that the worst is over for the world's No.1 carmaker.
[ID:nT145640].

U.S. non-farm productivity rose more than expected in the
third quarter, while a separate report showed fewer U.S. workers
filed new jobless insurance claims than forecast last week,
hitting a 10-month low. [ID:nN05106320]

"Japanese stocks were oversold yesterday, so there'll be
broad rises on short-covering," said Kenichi Hirano at Tachibana
Securities.

"But of course the U.S. jobs data tonight is really
important, and while nobody expects poor figures -- especially
after yesterday -- if the numbers come in just as expected
selling could emerge anyway."

The U.S. government is scheduled to release its key monthly
jobs report on Friday, with economists polled by Reuters
forecasting a loss of 175,000 jobs in October, sharply below the
263,000jobs cut in the previous month. But the unemployment rate
is forecast to rise to 9.9 percent.

One market analyst said investors who sold Nikkei futures
speculatively late in the day on Thursday were likely to turn to
short-covering on Friday. Market players said hedge funds were
also sellers on Thursday.

The benchmark Nikkei .N225 is likely to move between 9,700
and 9,950, market players said. It closed at a one-month low of
9,717.44 on Thursday.

In a sign stocks are likely to rise, Nikkei futures traded in
Chicago 2NKc1 closed at 9,870, up 1.8 percent from the Osaka
close JNIc1.
----------------------MARKET SNAPSHOT @ 2251 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1066.63 1.92% 20.130
USD/JPY JPY= 90.74 0.07% 0.060
10-YR US TSY YLD US10YT=RR 3.5274 -- 0.007
SPOT GOLD XAU= 1088.9 -0.06% -0.650
US CRUDE CLc1 79.62 0.00% -0.780
DOW JONES .DJI 10005.96 2.08% 203.82
-------------------------------------------------------------
> Wall St rallies on economic data, Cisco [.N]
> Dollar up modestly ahead of jobs data [USD/]
> Steady rate outlook supports short end [US/]
> Gold falls on investor disappointment, eyes $1,100 [GOL/]
> Oil falls below $80; demand outlook uncertain [O/R]
STOCKS TO WATCH

-- Japan Airlines Corp (9205.T)

JAL said it would eliminate 17 more routes to cut $78 million
in costs a year and is considering further route closures as it
seeks to turn around its loss-making business. [ID:nT203660]

-- T&D Holdings Inc (8795.T)

Insurance company T&D gave notice on Thursday that it may
raise up to 120 billion yen ($1.3 billion) to repay debt by
selling new shares. [ID:nT182153]

The firm said it had hired Nomura Holdings Inc and Daiwa
Securities SMBC, the investment banking arm of Daiwa Securities
Group, to handle the proposed sale.

-- Astellas Pharma (4503.T)

Astellas, Japan's No.2 drugmaker, cut its outlook further
below market expectations as tough competition from generic
drugmakers, the yen's strength and R&D costs took their toll.
[ID:nT368467]

-- Nikon Corp (7731.T), Elpida Memory (6665.T)

Precision equipment and camera maker Nikon cut its chip
stepper outlook, while chipmaker Elpida Memory Inc said it was
still waiting to see if it was safe to invest more amid mixed
signs of a tech recovery. [ID:nT173480]
(Reporting by Elaine Lies; Editing by Michael Watson)