TOKYO, Oct 15 (Reuters) Japanese stocks are likely to rise on Monday on gains in Wall Street and a softer yen, with commodities shares like Mitsui&Co and shippers setting the pace on expectations for strong earnings.
One stock likely to grab market attention is Tokyo Electron Ltd.
The chip- and display- making equipment manufacturer said on Friday orders fell a quarterly 11 percent in July-September as sluggish orders from PC memory makers offset a recovery in demand from flat TV makers.
Chip makers may continue to weigh after they fell on Friday after a brokerage downgrade on a bleak outlook for the sector as well as following the world's top memory chip maker Samsung Electronics' warning about a fall in chip prices.
''In the previous session, the Nikkei average was pushed down by profit-taking, but it is likely to rise, especially on a softer yen,'' said Masayoshi Yano, senior manager of investment information at Tokai Tokyo Securities.
The dollar was trading around a two-month high at 117.55 yen in early Asia.
''In today's session, the main attention will be on whether the index will go above SQ's 17,450.33,'' Yano said.
SQ or special quotation is the settlement price of futures and options contracts. The price, the latest one out on Friday, is widely seen as providing important resistance for the index.
Market participants said the Nikkei will likely trade between 17,300 and 17,500 on Monday. The benchmark finished the previous session down 0.7 percent at 17,331.17, but up 1.6 percent for the week.
Nikkei futures traded in Chicago finished at 17,510 on Friday, 170 points above the Osaka close, pointing to a higher opening.
On Wall Street Friday stocks rose, driven by a takeover bid in the software sector, data showing strength in consumer spending and a brighter outlook from McDonald's Corp.
The Dow Jones industrial average gained 0.6 percent and Standard&Poor's 500 Index rose 0.5 percent. The Nasdaq Composite Index climbed 1.2 percent.
STOCKS TO WATCH -- Seiko Epson Corp Japan's Seiko Epson plans to enter the organic electroluminescent (OEL) panel business after it succeeded in expanding the life span of OEL devices, the Nikkei business daily said on Sunday.
-- TDK Corp Japan's TDK will likely beat its first half profit forecasts thanks to a recovery in orders for hard drive heads and strong shipments of components for flat TVs and mobile phones, the Nikkei business daily reported on Saturday.
-- Tokyo Electron Ltd Orders for Tokyo Electron's chip- and display-making equipment fell a quarterly 11 percent in July-September as sluggish orders from PC memory makers offset a recovery in demand from flat TV makers, Tokyo Electron said on Friday.
Reuters CS VP0515