Nikkei may open weaker ahead of long weekend

TOKYO, Oct 6 (Reuters) Tokyo stocks are seen opening lower on Friday as core blue chips such as Canon Inc. could face profit-taking ahead of a three-day weekend and some key U.S. jobs data due later in the day.

Still, although a more than 2 percent rally in the benchmark Nikkei average on Thursday gives short-term players a chance to grab profits, some may seek bargains after the Dow Jones industrial average marked its third straight record close, market analysts said.

''The market could test the topside,'' said Hiroichi Nishi, a general manager of equity marketing at Nikko Cordial Securities.

''But it looks more likely that people will take profits on the recent gains ahead of the three-day weekend,'' he said.

Japanese markets are closed on Monday for a public holiday.

Nikkei futures trade in Chicago gave little sense of direction for the market on Friday. Nikkei December futures closed at 16,455 in Chicago, a fall of 5 points from the Osaka finish.

The Nikkei average is likely to move between 16,300 and 16,550 on Friday, market participants said.

The benchmark rose 2.28 percent to 16,449.33 on Thursday, its highest close since May 12.

The Dow average gained 0.14 percent to mark a record close of 11,866.69 in New York.

Restaurant chain Yoshinoya D&C Co. Ltd. and some other firms will report first-half earnings later in the day.

STOCKS TO WATCH -- Mitsui&Co. Ltd.

The Nihon Keizai business daily said general trading house Mitsui will work with Russia's state-owned nuclear fuel firm to develop one of the world's largest uranium mines and supply the material to nuclear power plants in Japan.

-- Aeon Co. Ltd.

Aeon plans to launch negotiations with Marubeni Corp. in an attempt to acquire a roughly 30 percent stake in supermarket chain Maruetsu Inc. from Daiei Inc., the Nihon Keizai said.

-- Sumitomo Mitsui Financial Group (SMFG) Japan's third-biggest banking group announced plans on Thursday to repay the last of the taxpayer money injected into its predecessor banks in late-1990s bailouts.

-- Access Co.

Access, developer of Internet software, said on Thursday that it and Softbank Corp. have developed Internet browsing and email software for cell phones.

-- INPEX Holdings Inc.

A senior Iranian oil official said on Thursday the INPEX share in the giant Azadegan oilfield in Iran would be cut to 10 percent from its original 75 percent holding.

Reuters DKS VP0515