Japan stocks seen up after US advance, yen eyed

TOKYO, May 8 (Reuters) Japanese stocks are seen rising on Monday, bolstered by an advance in U.S. markets during Tokyo's holiday-shortened trading last week, but a stronger yen is likely to weigh on shares of exporters.

Tokyo markets were closed last week from Wednesday to Friday for the ''Golden Week'' string of public holidays. During that time, the three main U.S. stock indexes all advanced, with the Dow Jones industrial average finishing at a six-year high.

But the yen also advanced. The Japanese currency was at 112.06 in early Asian trade on Monday, after hitting its highest since late September. A stronger yen is a minus for Japan's exporters as it eats into profits when earnings from abroad are brought home.

''U.S. markets made significant gains during the holidays ...

so I think that will influence investors at the start of trade and we are likely to see buying,'' said Yutaka Miura, deputy manager of equity information department, at Shinko Securities.

''However, the yen has advanced considerably, so that is likely to weigh on the market, especially on shares of exporters,'' Miura said.

Traders expect the Nikkei average to move between 17,100 and 17,400 on Monday. It rose 1.35 percent to 17,153.77 last Tuesday, the final day of trade last week.

In Chicago, Nikkei futures expiring in June closed at 17,340, an advance of 220 points from the Osaka finish.

STOCKS TO WATCH -- Toyota Motor Corp.

A Toyota employee has filed a 0-million lawsuit charging that the automaker's top U.S. executive sexually harassed her and other executives failed to act on her complaints.

-- Tokyo Broadcasting System Inc.

Japanese fund M&A Consulting raised its stake in the broadcaster to more than 4 percent as of the end of March, Kyodo news agency quoted TBS sources as saying on Saturday. The fund is run by shareholder activist Yoshiaki Murakami.

-- Nippon Telegraph and Telephone Corp.

Japan's largest telecoms operator is likely to raise its annual dividend payout for the current year to between 8,000-9,000 yen per share, the Nihon Keizai business daily said on Wednesday.

That represents a rise of 50 percent from the 6,000 yen payment expected for the business year ended on March 31, the paper said.

-- Mizuho Financial Group Japan's second-largest bank may raise its annual dividend for the fiscal year just ended by 500 yen to 4,000 yen per share, the Nihon Keizai business daily said on Wednesday.

Reuters VJ VP0515