Nikkei seen rising, Advantest, Matsushita in focus

TOKYO, July 27 (Reuters) The Nikkei average is seen advancing on Thursday, with shares of index heavyweight Advantest Corp. expected to lure buyers after its upbeat quarterly results.

Matsushita Electric Industrial Co. Ltd. may also be in focus.

After the market closed on Wednesday, Matsushita reported a 41.5 percent jump in its quarterly profit, boosted by strong demand for its plasma TVs, and raised its half-year forecast by 11 percent.

The Tokyo market may get further support from the relative firmness in US stocks after the Federal Reserve's Beige Book report on regional economic conditions, which reinforced the view that the Fed could soon end its cycle of interest-rate hikes.

''It is encouraging that some stability is returning to external factors, which have previously weighed on the Tokyo market,'' said Koichi Seki, manager at Chuo Securities' sales marketing department.

Still, buying may be modest as investors take a wait-and-see attitude ahead of a series of earnings reports from major Japanese companies this week, he said.

Companies to report quarterly earnings later in the day include Sony Corp., NEC Corp., Fujitsu Ltd. and JFE Holdings Inc.

Canon Inc. is set to announce first-half results.

Chicago-traded Nikkei futures contracts pointed to a slight gain in the Tokyo stock market. Nikkei September futures closed at 14,950, a rise of 60 points from the Osaka finish.

Tokyo's benchmark Nikkei average is expected to move between 14,850 and 15,100 on Thursday, market participants said.

The Nikkei fell 0.81 percent to 14,884.07 on Wednesday.

US stocks booked a minor loss on Wednesday, giving up gains in the final minutes of trading. The Dow Jones industrial average dipped 0.01 percent and the Nasdaq Composite Index slipped 0.17 percent.

Advantest, the world's largest supplier of tools used to test microchips, on Wednesday posted a 47 percent rise in its net profit, boosted by sales for DRAM and LCD driver chip testers.

The company also announced a 2-for-1 share split on Oct. 1, for shareholders as of Sept. 30, in a bid to improve liquidity and make its shares more attractive to individual investors.

The American Depositary Receipts (ADRs) of Matsushita fell 0.8 percent to .89 overnight in New York, compared with Tokyo's closing of 2,315 yen (.91).

STOCKS TO WATCH -- Seiko Epson Corp.

Seiko Epson said on Wednesday it swung to a profit in the latest quarter as it phased out low-end ink jet printers that were eating into earnings, and kept its full year forecast for a 55 percent profit gain.

-- Honda Motor Co.

Japan's third-biggest car maker posted a slightly better than expected 30 percent rise in quarterly net earnings, fuelled by strong US sales, and maintained its full-year profit forecast.

The ADRs of Honda rose 1.6 percent to .76 overnight, versus Tokyo's closing of 3,770 yen (.42).

-- Nomura Holdings and Daiwa Securities Group Japan's No.1 and No.2 brokerages reported surging profits from a weak year-ago period, but earnings plummeted from the previous quarter on a slump in Tokyo's stock market.

The ADRs of Nomura fell 3 percent to .9 in New York, compared with Tokyo's close of 1,992 yen (.13).

-- Nippon Yusen K.K.

Japan's three leading shipping companies, including Nippon Yusen, are expected to suffer double-digit declines in group recurring profits for the April-June quarter due to lofty fuel prices and a slow recovery in container vessel freight rates, the Nihon Keizai business daily said on Thursday.

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