Nikkei set to rise as earnings hit peak, eyes on JAL

TOKYO, Oct 30 (Reuters) - Japan's Nikkei stock average is
likely to rise on Friday, with Canon Inc (7751.T) and other
exporters strong after data showing the U.S. economy had returned
to growth cheered investors, sending Wall Street higher.

Japan Airlines Corp (9205.T) will be in the spotlight after
saying on Thursday it would apply for assistance from a
state-backed corporate turnaround body, setting the stage for a
large injection of public funds into the troubled airline.
[ID:nT349661]

The U.S. government's first estimate of U.S. gross domestic
product showed the economy expanded at an annual rate of 3.5
percent in the third quarter, the first quarter of growth after
more than a year of contraction. [ID:nN29354547]

"The Nikkei is likely to rise broadly after the U.S. GDP data
sent Wall Street higher," said Hiroichi Nishi, general manager at
the equity division of Nikko Cordial Securities.

"The Nikkei's falls earlier this week have made prices
attractive for investors, but because today is the end of the
week as well as the end of the month, look for profit-taking at
the highs."

Other market players said that while the GDP data was
extremely positive, investors were likely to remain somewhat wary
ahead of a slew of U.S. events and economic indicators next week,
including a Federal Reserve meeting, limiting gains a bit.

Japan's earnings season peaks on Friday, with big names such
as Sony Corp (6758.T), Toshiba Corp (6502.T) and Panasonic
(6752.T) all due to announce after the close.

Market players said the benchmark Nikkei .N225 was likely
to move between 9,900 and 10,100. It closed at 9,891 on Thursday,
a three-week low.

In a sign that the Nikkei is likely to open higher, Nikkei
futures traded in Chicago 2NKc1 closed at 10,050, up 1.7
percent from the Osaka close.

----------------------MARKET SNAPSHOT @ 2252 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1066.11 2.25% 23.480
USD/JPY JPY= 91.55 0.13% 0.120
10-YR US TSY YLD US10YT=RR 3.4955 -- 0.000
SPOT GOLD XAU= 1045.8 0.08% 0.850
US CRUDE CLc1 80.15 0.35% 0.300
DOW JONES .DJI 9962.58 2.05% 199.89
-------------------------------------------------------------
> Wall St jumps as GDP growth spurs optimism [.N]
> US dollar falls after GDP as safe-haven flows ease [USD/]
> Bonds fall as Q3 GDP raises recovery hopes [US/]
> Gold rises toward $1,050/oz on economic optimism [GOL/]
> Oil jumps more than $2 after U.S. GDP growth [O/R]
STOCKS TO WATCH

-- Nintendo Co Ltd (7974.OS)

Nintendo reported a 52 percent slide in quarterly profit on
Thursday and slashed its full-year forecast, as the Wii console
loses its title as the videogame platform to beat. [ID:nT328320]

-- NEC Corp (6701.T)

NEC, Japan's biggest PC maker, cut its full-year operating
profit outlook by 40 percent on deepening losses on its microchip
unit and sluggish sales of its network systems. [ID:nT9578]

-- Sharp Corp (6753.T)

Sharp posted its first quarterly profit in a year as TV and
screen panel demand recovered, but a 15 percent fall in overall
sales and a cautious company outlook means strong earnings growth
is still elusive. [ID:nT336623]

-- Olympus Corp (7733.T)

Olympus is expected to show a group operating profit of 28
billion yen for the April-September first half, beating the
company's own forecast of 19 billion yen, the Nikkei business
daily said on Friday. [ID:nWNAB6991]

-- All Nippon Airways (9202.T)

All Nippon Airways, Japan's second-largest airline, said it
has been informed by South Korea's fair trade commission of a
potential violation of competition law in its cargo operations.

-- Showa Shell Sekiyu KK (5002.T)

Showa Shell Sekiyu, Japan's fifth-largest oil refiner, said
on Thursday it expects its crude runs for the fourth quarter to
be nearly flat from a year earlier as an expected jump in oil
exports offsets weak refining for the domestic market.
[ID:nT354534]

-- Japan Tobacco (2914.T)

The company raised its operating profit forecast by 11.5
percent to 272 billion yen for the year ending in March, citing a
stronger ruble and other foreign currencies against the U.S.
dollar than in its previous estimate, which would push up
earnings at at its overseas subsidiary.

For the first half ended in September, operating profit fell
20 percent to 163.7 billion yen, hurt by a stronger yen.

-- Pioneer Corp (6773.T)

Struggling electronics maker Pioneer will roughly halve its
planned fundraising to 20 billion yen after its finances improved
on a pickup in earnings, the Nikkei business daily said on
Friday.

After the close on Thursday, Pioneer narrowed its net loss
forecast for the year to March 2010 to 59.5 billion yen from a
loss of 83 billion yen. It raised its sales forecast to 451
billion yen from 420 billion yen. [ID:nT292ONSKW]
(Reporting by Elaine Lies; Editing by Chris Gallagher)