Japanese stocks likely to rise, spotlight on Sony

TOKYO, May 15 (Reuters) - Japanese stocks are likely to rise
on Thursday, led by exporters such as Canon Inc (7751.T) on a
softer yen.

Sony Corp (6758.T) is likely to be in the spotlight after it
posted a surprise quarterly loss as a weak stock market ate into
the value of securities held by its financial arm, but it
forecast a bigger-than-expected profit this year. [ID:nT213666]

"With the dollar at the 105 yen level, exporters are likely
to lead the market. Sony's earnings outlook is also good," said
Mitsuo Shimizu, deputy general manager of equities at Cosmo
Securities.

Nomura Securities lifted its rating on Sony to "strong buy"
from "buy" following the company's results and forecasts.
[nTKF003152]

The day is heavy with earnings announcements, with Mizuho
Financial Group (8411.T) among the major firms set to report
results.

On the macroeconomic front, Japan's core machinery orders in
March are due out before the open. They are expected to have
declined 5.5 percent in that month.

Market analysts expect the benchmark Nikkei average to move
between 13,950 and 14,250 on Thursday.

Nikkei futures traded in Chicago 2NKc1 closed at 14,205 on
Wednesday, 95 points above their close in Osaka JNIc1.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1408.66 0.4% 5.620
USD/JPY JPY= 105.07 0.03% 0.030
10-YR US TSY YLD US10YT=RR 3.9207 -- 0.000
SPOT GOLD XAU= 865 0.16% 1.350
US CRUDE CLc1 124.05 -0.14% -0.170
DOW JONES .DJI 12898.38 0.52% 66.20
-------------------------------------------------------------
> Benign inflation, strong results lift Wall St [.N]
> Yen falls broadly after tame CPI data, stocks rise [USD/]
> Prices fall as equities draw investors [US/]
> Gold ends tad lower; physical buyers resurface [GOL/]
> Oil falls on Iran assurance, US distillate build [O/R]
STOCKS TO WATCH

-- Nissan Motor Co (7201.T)

Nissan plans to raise prices for its automobiles sold in
Japan to pass on higher costs for materials such as steel, Nissan
President Carlos Ghosn was quoted by the Nikkei business daily as
saying in an interview published on Thursday.

-- Softbank Corp (9984.T)

Softbank will turn the Japanese unit of Chinese Internet
giant Alibaba Group into a consolidated subsidiary, the Nikkei
business daily reported on Thursday.

-- Inpex Holdings Inc (1605.T)

The oil and gas field developer said on Wednesday it expected
its net profit to fall 30.7 percent to 120 billion yen for the
year ending in March 2009, hit by a sharp rise in the yen against
the dollar.

The outlook was worse than the mean forecast of 191.5 billion
yen in a poll of nine analysts by Reuters Estimates.

-- Daikin Industries Ltd (6367.T)

The air conditioner maker said on Wednesday it expected its
operating profit to rise 9 percent to 140 billion yen for the
year ending in March 2009, with overseas sales likely to continue
to lead growth, though the outlook was below a mean forecast of
145 billion yen in a poll of 11 analysts by Reuters Estimates.

For the year just ended, the firm's operating profit jumped
58.8 percent to 128.5 billion yen, buoyed by the acquisition of
Malaysian rival OYL Industries and strong growth in China and
Europe.

-- Shinsei Bank (8303.T)

The struggling bank will once again turn to clean-up man
Masamoto Yashiro, bringing back the 79-year-old former chief
executive who transformed a bankruptcy into a Western-style bank.
[ID:nT137344]
(Reporting by Taiga Uranaka; Editing by Hugh Lawson)