Tokyo stocks seen moving higher, earnings eyed

TOKYO, Feb 1 (Reuters) Tokyo stocks are seen gaining ground on Thursday, with shares of exporters such as Toyota Motor Corp.

advancing after the U.S. Federal Reserve held rates steady in a key market for Japanese goods.

But gains may be limited as investors continue to wait for earnings results. Konica Minolta Holdings Inc. and Matsushita Electric Industrial Co. Ltd., the maker of Panasonic products, are among firms due to report earnings later on Thursday.

Nikkei futures pointed to a rise in stock prices. Contracts expiring in March finished at 17,430 in Chicago, 40 points above the close in Osaka.

''After the rise on Wall Street, and the advance by Nikkei futures, we are likely to see Tokyo recouping most of its losses from yesterday,'' said Toshihiko Matsuno, assistant general manager of investment research at SMBC Friend Securities.

However, gains were likely to be limited by caution before the release of earnings, he said.

The Nikkei is seen moving between 17,300 and 17,500 on Thursday, market participants said. The share average fell 0.61 percent on Wednesday to 17,383.42.

U.S. stocks rose on Wednesday after the Fed held rates steady and flagged no concerns about inflation. The Nasdaq Composite Index was up 0.62 percent.

Higher U.S. rates are a negative for Japanese exporters who rely on consumer spending in the United States for much of their profits.

STOCKS TO WATCH -- Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMFG).

Japan's three biggest banks reported sharp profit declines for the third quarter ended in December on Wednesday, hurt by slack demand for their mainstay corporate loans.

-- Honda Motor Co.

Honda posted a smaller-than-expected rise in quarterly profit as fierce competition in China weighed on sales, and it left its operating profit forecast unchanged despite a big lift from a weaker yen.

-- Toshiba Corp., Fujitsu Ltd.

Toshiba and Fujitsu said quarterly operating profit dropped on sharp price falls in microchips and hard drives, and forecast steeper price declines to come.

-- Sharp Corp.

Sharp posted a 13 percent gain in quarterly operating profit on Wednesday as a new panel plant helped it cope with steep falls in flat TV prices, and it stuck to its annual forecast for a 10 percent profit rise.

Rival Victor Co. of Japan Ltd. saw its profit fall by almost half in October-December, while Pioneer Corp. cut its full-year profit outlook by one-third, underscoring a widening gap between winners and losers in the flat TV industry.

-- All Nippon Airways ANA on Wednesday revised up its 2006/07 profit by 17 percent thanks to strong demand from individual fliers on domestic routes as well as brisk business demand on flights to Europe and North America and leisure demand on flights to China and other Asian destinations.

The airline now expects a group operating profit of 89 billion yen in the year to March instead of its previous forecast of 76 billion yen.

-- Tokyo Electric Power Co. (TEPCO) Japan's largest utility said on Wednesday it had found more past data falsification at its nuclear and thermal power plants.

-- NTT DoCoMo Inc.

Japan's top mobile phone operator posted an 18.4 percent gain in quarterly profit on Wednesday, helped by cost cuts, but kept its forecast as it expects tougher competition towards the end of the business year.

-- Ajinomoto Co Inc. and Calpis Co Ltd.

French food group Danone said on Wednesday it had acquired all shares of its Japanese joint venture with Ajinomoto and Calpis to accelerate its strategic growth objectives in the Asian dairy market.

Reuters SBA VP0530