Nikkei to rise after energy stocks boost Wall St

TOKYO, Oct 16 (Reuters) - Japan's Nikkei stock average is set
to gain on Friday, buoyed by energy-linked shares such as oil
explorer Inpex (1605.T) after rising oil prices helped boost Wall
Street to 2009 highs.

U.S. crude oil futures CLc1 rose more than 3 percent to a
one-year high after data showed inventories fell sharply in the
latest week. That helped U.S. energy shares eclipse a retreat in
banking stocks after earnings results failed to meet the high
standards set earlier in the week by JPMorgan Chase & Co. (JPM.N)

"Energy and resource shares are likely to be strong, with
exporters firming up as well," said Hiroichi Nishi, general
manager at the equity division of Nikko Cordial Securities.

"Overall, there's a lot of expectations that the global
economy is recovering, and this is lifting world stock markets.
While the Nikkei is obviously lagging other markets, the
environment is so good that even it will start to benefit," he
said.

The dollar rose above 90 yen, and this was also likely to
lend support to exporters, market players said. JPY= Investors
fret over a strong yen as it eats into exporter profits when
repatriated.

Goldman Sachs Group (GS.N) and Citigroup Inc's (C.N) results
exceeded forecasts, with Goldman's earnings nearly quadrupling
and Citigroup's third-quarter loss narrower than expected. But
Citigroup also booked $8 billion in credit losses.
[ID:nN15288862] [ID:nN15291217].

Market players said the results set off profit-taking in
banking shares that was likely to spark profit-taking among
financial shares in Tokyo as well, with the Nikkei expected to
drift after an initial bounce amid a lack of fresh trading
incentives.

The benchmark Nikkei .N225 is likely to move between 10,200
and 10,400, market players said. On Thursday it closed at a
three-week high of 10,238.65.

In a sign the market is likely to start higher, Nikkei
futures traded in Chicago 2NKc1 closed at 10,325, up 0.8
percent from the Osaka close JNIc1.
----------------------MARKET SNAPSHOT @ 2251 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1096.56 0.42% 4.540
USD/JPY JPY= 90.62 0.07% 0.060
10-YR US TSY YLD US10YT=RR 3.464 -- 0.000
SPOT GOLD XAU= 1050.45 0.06% 0.600
US CRUDE CLc1 77.85 0.35% 0.270
DOW JONES .DJI 10062.94 0.47% 47.08
-------------------------------------------------------------
> Wall St ends at 2009 highs on oil; Google up late [.N]
> Dollar gains vs yen as data prompts profit-taking [USD/]
> Bonds fall as data overshadow choppy stocks [US/]
> Gold falls as dollar firms, ignores oil rally [GOL/]
> Oil hits one-year high over $77 on US product draw [O/R]
STOCKS TO WATCH

-- Takeda Pharmaceutical Co (4502.T)

Takeda's recurring profit rose 88 percent year-on-year to
around 190 billion yen in the April-September first half, falling
short of the company's forecast of 205 billion yen, the Nikkei
business daily reported on Friday.

Sales of Takeda's Actos diabetes treatment and other drugs
for lifestyle illnesses have been sluggish in North America as
consumers cut back on medical spending, the Nikkei said.

-- Toyota Motor Corp (7203.T) and Daihatsu Motor Co (7262.T)

The Nikkei business daily reported the companies will develop
a low-cost car for emerging markets and will begin manufacturing
a car in India around 2011. [ID:nWNAB9649]

-- Japan Airlines Corp (9205.T) (JAL)

Japan Airlines will suspend a previous plan to sell interests
in its resort-bound flight operations and will consider other
options such as establishing a business cooperation plan with low
cost carriers, the Nikkei business daily said on Friday.
[ID:nWNAB9625]

-- Panasonic Corp (6752.T)

Panasonic said it aims to turn its robot business profitable
in six years, with the focus on developing practical models that
assist humans rather than humanoid machines. [ID:nT93228]

-- Starbucks Coffee Japan (2712.OJ)

Starbucks raised its full-year profit forecast by 50 percent
as cost cutting and higher sales of locally developed drinks
helped it boost margins even in the face of slumping sales.
[ID:nT99435]

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

TEPCO said on Thursday it has cut power output at the 1,100
megawatt No.4 reactor at its Fukushima-Daini nuclear plant to
around 30 percent of capacity due to a problem and added it was
considering shutting the unit. [ID:nT101170]
(Reporting by Elaine Lies; Editing by Edwina Gibbs)