Tokyo stocks seen moving higher on softer yen

TOKYO, Apr 20 (Reuters) Tokyo stocks are seen moving higher on Friday, after Asian shares slid in the previous session on fears of an interest rate hike in China, with exporters such as Advantest Corp. rising on a softening yen and following relatively calm reactions from major overseas markets.

Investors may also focus on Rakuten Inc., which said it planned to raise its stake in Tokyo Broadcasting System Inc. to more than 20 percent, prompting the broadcaster to threaten the use of a ''poison pill'' defence.

China's economy grew at a blistering 11.1 percent annual pace in the first quarter, data showed on Thursday, fuelling speculation that interest rates would need to rise again soon.

''The Nikkei is likely to take back losses it booked yesterday as markets in Europe and the United States were calm after the benchmark also dropped on concerns about China's GDP,'' said Kazuhiro Takahashi, general manager of equity marketing department at Daiwa Securities SMBC.

The Nikkei slid 1.67 percent to 17,371.97 on Thursday, booking its biggest one-day loss in a month, as market sentiment turned sour after the Shanghai Composite Index dropped more than 3 percent on the view that Chinese economic data could spark turbulence.

Takahashi said investors may also pick up issues of ship builders, shipping firms and real estate firms on expectations of their solid earnings results.

Japan's earnings season kicks off next week.

Nikkei futures pointed to a rise in the market. Contracts expiring in June finished at 17,450 in Chicago, a gain of 60 points from the close in Osaka The Nikkei is likely to move between 17,400 and 17,600 on Friday, market participants said.

In late afternoon trading in New York, the dollar recovered from lows of 117.62 yen to trade at 118.45 A weaker yen is a boon to companies that make the bulk of their sales abroad because it boosts profits when earnings from abroad are brought home.

U.S. stocks ended nearly flat on Thursday with the Dow Jones industrial average up 0.04 percent to close at a record 12,808.63, while the Nasdaq Composite Index shed 0.21 percent.

The pan-European FTSEurofirst 300 index lost 0.3 percent and Britain's FTSE 100 index shed 0.1 percent.

Japanese companies scheduled to report earnings results on Friday include Daiei Inc.

STOCKS TO WATCH -- Toyota Motor Corp T> Toyota is likely to report a 20 percent jump in group operating profit for the year ended last month to a record 2.25 trillion yen due to brisk shipments in North America, the Nikkei business daily said on Friday.

-- Canon Inc. T> The world's top camera and copier maker may report a 14 percent increase in net income for 2007 on robust sales of the company's core products, the Nikkei newspaper said on Friday.

-- Tokyo Broadcasting System, Rakuten Inc. Rakuten said on Thursday it planned to buy more shares in Tokyo Broadcasting System to push through its long-running merger proposal, but the plan could trigger the broadcaster to implement a planned takeover defence measure. -- Mitsubishi Rayon Co. Ltd. T> Mitsubishi Rayon on Thursday cut its group net profit outlook by 6 percent to 31 billion yen for the year ended last month, citing an increase in special losses from restructuring.

But the acrylic fibre manufacturer lifted its 2006/07 operating profit outlook by 3.5 percent to 59 billion yen due to growing demand for its carbon fiber and resin business.

-- Janome Sewing Machine Co. Ltd. T> The sewing machine maker on Thursday cut its group net profit forecast for the year ended last month to 400 million yen from 1.25 billion yen while lowering its sales forecast to 49 billion yen from 51.5 billion yen.

-- TDK Corp. T> U.S. recording disk and tape maker Imation Corp. said on Thursday it will buy TDK's brand and sales operations in recording media for 0 million in stock and cash.

-- Usen Corp. OJ> Goldman Sachs Group Inc. said on Thursday that a unit would pay 25 billion yen for an 18 percent stake in cable broadcaster Usen, making it the second-biggest shareholder.

Reuters HK VP0520