Tokyo stocks seen opening up after Dow hits record

TOKYO, Oct 4 (Reuters) Tokyo stocks are seen moving higher on Wednesday with the prospect of investors returning to Sony Corp. and other blue-chip stocks, encouraged by easing concerns about the U.S. economic outlook after the Dow hit an all-time high.

But gains may be limited due to caution ahead of first-half corporate earnings announcements starting this month and renewed security concerns after Tuesday's announcement by North Korea that it would conduct its first nuclear test, analysts said.

''The market is likely to open higher. Behind that lies the Dow's marking a record high,'' said Shinji Igarashi, equity manager at Chuo Securities' sales department.

But diplomatic tension following Pyongyang's announcement could prompt speculative selling to which the Tokyo market is vulnerable, having risen too far, too fast, he said.

''The pitch of the rally has been quite fast, so selling seems to be lining up at the topside,'' Igarashi said, referring to a four-day rise by the Nikkei average that ended on Monday, in which it climbed almost 700 points.

Nikkei futures pointed to a small rise in the market on Wednesday. Nikkei December futures closed at 16,250 in Chicago, a rise of 10 points from the Osaka finish.

The Nikkei is likely to move between 16,100 and 16,350 on Wednesday, market participants said.

The Nikkei fell 0.08 percent to 16,242.09 on Tuesday. It hit its highest close in nearly a month on Monday after the Bank of Japan's tankan survey showed improved business sentiment.

In New York, the Dow Jones industrial average average climbed to 11,758.95 on Tuesday, helped by lower crude oil prices. It surpassed its previous intraday record of 11,750.28 reached on Jan. 14, 2000, when investors rode the Internet stock mania. It crashed two months later.

Retailer Aeon Co. Ltd. is set to announce half-year earnings results later in the day.

STOCKS TO WATCH -- Nintendo Co. Ltd. OS> Nintendo on Tuesday raised its consolidated net income forecast for the current business year by 20.5 percent to 100 billion yen (0.1 million) on strong sales of its DS handheld game console and a weaker-than-expected yen.

Nintendo, the third-ranked game console maker, said the revision includes its latest estimates for its new game player, Wii, which is expected to go on sale in the United States in November. Its launch in Japan is Dec. 2.

-- Sanrio Co. Ltd.

Sega Sammy Holdings Inc., the holding company for game software maker Sega Corp. and pachinko pinball machine maker Sammy Corp., said on Tuesday it had raised its stake in Sanrio to 13.77 percent, becoming the top shareholder of the maker of ''Hello Kitty'' goods.

-- Fast Retailing Co. Ltd.

The operator of Uniqlo casual-wear chain said on Tuesday its same store sales in September rose 12.6 percent from a year earlier on strong sales of autumn clothings.

-- Cosmo Oil Co.

Japan's fourth-largest refiner said on Tuesday it had uncovered more cases of regulatory violations relating to repair work it had done at its plants.

-- Murata Manufacturing Co. Ltd.

Electronics components maker Murata Manufacturing will increase capital spending for the current business year from the previously announced 80 billion yen, its president, Yasutaka Murata, said in an interview on Tuesday.

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