Nikkei seen edging lower, eyes on CPI data

TOKYO, Dec 1 (Reuters) Tokyo stocks are seen edging lower on Friday following a two-day rally, as investors sell exporters amid concerns over a stronger yen, though much will depend on consumer price data to be released before the open.

Japan's core consumer price index (CPI), which could give clues on when the central bank will raise interest rates, is expected to rise 0.2 percent in October, according to the median forecast in a Reuters poll.

''Investors would likely sell exporters and real estate stocks if the data shows a higher-than-expected reading, which investors would take as a sign that the Bank of Japan may rise interest rates by the end of this year,'' said Kenji Kobata, a managing director in research department at Ace Securities.

Nikkei futures pointed to a fall in the market. December futures traded in Chicago closed at 16,220 on Thursday, down 90 points from their close in Osaka The Nikkei average is likely to move between 16,150 and 16,300 on Friday, Kobata said, after closing the previous session up 1.23 percent at 16,274.33.

In the United States, the Dow Jones industrial average slipped 0.04 percent following a report on slower Midwestern business activity, raising concerns over the strength of the world's largest econmoy and a key market for Japanese goods.

In another worrisome sign for exporters, the dollar fell 0.6 percent to 115.7 yen in New York.

Japan will also announce jobless data before the opening of trade.

STOCKS TO WATCH --Isuzu Motors Ltd. T> Isuzu and Itochu Corp. will invest 50 billion yen to establish a sales company offering new truck sales and trade-ins, business daily Nihon Keizai reported on Friday.

The joint company will be established in February, aimed at a new business model to cope with a shrinking truck market, the paper said.

--Aozora Bank Ltd. T> The Japanese lender recently floated by U.S. private equity firm Cerberus said on Thursday it will invest 0 million in GMAC, the finance unit of General Motors Corp.

--Sony Corp. T> Sony's game unit said on Thursday President Ken Kutaragi will become chairman on Dec. 1 while keeping his post as chief executive.

Sony Computer Entertainment, which earlier this month launched its latest game console, PlayStation 3, said Kazuo Hirai, head of its U.S. operations, will become president and chief operating officer.

--Chugai Pharmaceutical Co. Ltd. T> Swiss drug firm Roche said on Thursday it had filed an application, together with its Japanese unit Chugai, with Japanese authorities for approval of Herceptin as an additional indication of operable early-stage HER2-positive breast cancer.

The drug is used as a standard therapy for HER2-positive metastatic breast cancer.

--Lion Corp. T> Lion, a Japanese household goods producer, said on Thursday it and German consumer goods company Henkel have decided to cancel their seven-year-old cross-share holding deal due to an accounting change in Europe.

But the two firms will continue their operational tie-up, including exchanging information and employees, Lion said.

REUTERS SBA BST0522