Tokyo stocks to move higher on Wall St, softer yen

TOKYO, June 15 (Reuters) A rise in US stocks and a weaker yen may push up Japanese stocks on Friday, helping high-tech exporters such as Canon Inc. extend their gains.

Another focus in the market may be Toyota Motor Corp. and Isuzu Motors Ltd.

The Nikkei business daily said on Friday that Toyota has decided to outsource production of low-pollution diesel engines to Isuzu, aiming to solidify its position as leader in eco-friendly cars by tapping the technology of a capital tie-up partner.

''We can expect a solid move in the market today following the U.S., and a softer yen will also help,'' said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC.

''If Nikkei futures continue to be strong, investors may grow more willing to take risks, and the index could try for the 18,000 level.'' Takahashi said trade could become a bit cautious before a news conference by Bank of Japan Governor Toshihiko Fukui later in the day.

The central bank looks set to keep interest rates unchanged at a two-day policy meeting that ends on Friday.

Nikkei futus rose on Thursday as a 2 percent gain in oil prices boosted shares of Exxon Mobil Corp. and other energy companies while data showing moderate inflation lifted optimism about the economy.

The Dow Jones industrial average gained 0.53 percent to end at 13,553.73.

STOCKS TO WATCH -- NTT DoCoMo Inc. T> Japan's top mobile phone carrier NTT DoCoMo Inc., which lost billion in ill-fated overseas investments six years ago, is in no hurry to make similar forays abroad, its president told Reuters in an interview on Thursday.

-- Daio Paper Corp. T> Procter&Gamble Co. said on Thursday it would sell its Japanese adult diaper business to Daio Paper, exiting a market that is growing 5-10 percent each year as the population greys.

-- Tokyo Dome Corp. T> Tokyo Dome on Thursday said its group operating profit fell 38 percent in the quarter ended April 30 as sales fell 15 percent, reflecting its exit from finance-related businesses and a weak showing by its golf resort operations.

The company, which operates the Tokyo Dome stadium, kept its full-year forecasts but warned that it may need to revise down its earnings estimates because of the tough conditions facing the professional baseball business.

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