Tokyo stocks seen rising on techs, earnings eyed

TOKYO, July 26 (Reuters) Tokyo stocks are seen advancing for a second straight session on Wednesday, with shares of technology firms leading the charge after a late-session rally by similar U.S. stocks.

But larger gains may be capped as investors await first-quarter earnings results from some of Japan's leading firms. Matsushita Electric Industrial Co. Ltd., the maker of Panasonic products, is among the companies due to report its results after the close of trade on Wednesday.

Shares of Nissan Motor Co. may be in focus after Japan's second-largest car maker posted a worse-than-expected 26 percent slump in quarterly operating profit on Tuesday.

Investors began buying tech shares in late New York trade on Tuesday, due to the perception they were undervalued, U.S. market participants said.

That boost is likely to help similar Japanese firms, said Yutaka Miura, a deputy manager of equity information at Shinko Securities.

''At the start of trade we're likely to see some buying after the gains made in the U.S.,'' Miura said.

''However, in the afternoon session we may see some selling, and gains may be trimmed as investors begin to look to earnings.'' Chicago-traded Nikkei futures contracts pointed to a slight advance in the Tokyo stock market. Nikkei September futures closed at 15,145, a rise of 85 points from the Osaka finish.

Tokyo's benchmark Nikkei average is expected to move between 14,950 and 15,150 on Wednesday, market participants said.

The Nikkei rose 1.42 percent on Tuesday to close above 15,000 for the first time in more than a week.

U.S. stocks rose on Tuesday as a last-minute surge in battered technology shares pushed the Nasdaq Composite Index up 0.58 percent.

STOCKS TO WATCH -- Sharp Corp.

Sharp reported a 14 percent gain in quarterly profit on Tuesday, buoyed by robust demand for its liquid crystal display televisions, and stood by its annual outlook that matched market expectations.

-- Aiful Corp.

Japan's biggest consumer lender posted a 27.7 percent drop in its quarterly profit on Tuesday due to a fall in new accounts, but kept its full-year forecast for a 20 percent profit decline.

-- Shinsei Bank Ltd.

Shinsei reported a 10.2 percent rise in quarterly profit on Tuesday on income from newly acquired units and said it was on track to meet its full-year earnings target.

Reuters SK VP0523