Tokyo stocks seen up on earnings confidence

TOKYO, Aug 4 (Reuters) Japanese stocks are expected to rise on Friday, as investors continue to pick up shares in firms with solid earnings, and after both U.S. stocks and Chicago-traded Nikkei futures posted gains.

Investors will also be awaiting quarterly earnings results from several major Japanese companies later in the day. Toyota Motor Corp. and top shipper Nippon Yusen are among the firms due to report.

''Rather than one sector, I think investors will continue to look for companies with solid quarterly results ... We've seen some good results from first quarter earnings,'' said Yutaka Miura deputy manager of equity information at Shinko Securities.

Sentiment was also likely to be boosted by a rise in New York stocks and Nikkei futures.

Chicago-traded Nikkei September futures closed at 15,555, 45 points above the Osaka finish.

The Nikkei is expected to move between 15,400 and 15,600 on Friday, market participants said. The benchmark average edged up 0.04 percent to 15,470 on Thursday.

U.S. stocks rose on Thursday as Apple Computer Inc. shares gained on the company's iPod deal with several automakers.

STOCKS TO WATCH -- Hokuetsu Paper Mills Ltd.

A takeover fight in Japan's paper industry began a new round on Thursday when second-ranked Nippon Paper Group Inc. bought a stake in smaller rival Hokuetsu to block a hostile bid by industry leader Oji Paper Co.

-- Nippon Telegraph and Telephone Corp.

NTT, a former government monopoly, said on Thursday operating profit fell 10.1 percent in the first quarter after its mobile phone unit raised spending to lure more users to its high-speed networks.

-- Takeda Pharmaceutical Co. Ltd.

Japan's biggest drug maker said on Thursday it has received approval from European regulators to sell its Competact diabetes drug, which combines its hit diabetes treatment Actos and the diabetes medicine metformin.

REUTERS VJ RK0510