Tokyo, Oct 9: Exporters such as Canon Inc are likely to lead Japanese stocks higher on Tuesday after Friday's record-setting rally on Wall Street, buoyed by stronger-than-expected employment data and a softer yen.
Japanese markets were closed on Monday due to a national holiday.
One stock in focus may be Toray Industries Inc The Nikkei business daily said on Tuesday Toray plans to spend about 30 billion yen ($255.7 million) to build a factory to mass-produce carbon fibre automotive parts as early as 2010.
''Japanese stocks will likely advance after US stocks rallied on strong jobs data, though they eased a bit on Monday, and as the yen is trading on the 117 yen level, helping high-tech shares and exporters,'' said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.
''But investors may take a wait-and-see attitude after the market opens higher as concerns about the U.S. economic slowdown still remain and the market lacks domestic trading factors.'' Nikkei futures traded in Chicago finished at 17,290 on Monday, 160 points above the Osaka close, pointing to a higher opening.
In New York on Monday, the dollar climbed to 117.38 yen a gain of 0.4 per cent from 116.96 yen late Friday and its highest level since mid-August.
Market participants said the Nikkei will likely trade between 17,000 and 17,350 on Tuesday. The benchmark finished Friday down 0.2 per cent at 17,065.04. On the week, the Nikkei added 1.66 percent, booking its fourth straight weekly gain.
The US Dow industrials and the S&P 500 dipped in light trading volume on Monday as investors locked in profits from Friday's rally and two brokers downgraded Merrill Lynch&Co, citing its exposure to credit market turmoil.
The Dow Jones industrial average declined 0.16 percent to end at 14,043.73 after reaching an intraday record high of 14,124.54 on Friday.
STOCKS TO WATCH
-- Simplex Investment Advisors Inc T> Goldman Sachs and fund management firm Aetos Capital said on Friday they would take over property investor Simplex Investment Advisors Inc in a $1.4 billion deal.
Goldman and Aetos will offer 215,000 yen per Simplex share, compared with Simplex's Friday closing price of 150,000 yen.
-- Nippon Express Co Ltd T> Nippon Express and Japan Post Holdings Co said on Friday they have agreed to merge their domestic parcel delivery services and may form a broader alliance, including capital ties.
-- Aeon Co Ltd T> Aeon said on Friday that it will roll out a retail banking business later this month, the latest entrant to the competitive bank market in the world's second-largest economy.
-- Ain Pharmaciez Inc, CFS Corp T> Ain Pharmaciez, Japan's top pharmacy chain, said on Friday it plans to take over CFS Corp, a major drugstore operator, in a share swap deal worth $120 million that has drawn the ire of retail giant Aeon, CFS's top shareholder.
-- Japan Airlines Corp (JAL) T> JAL will book a roughly 20 billion yen charge for potential fines from a global price fixing probe by US and EU officials, the Asahi Shimbun daily reported on Saturday.
-- Olympus Corp T> Olympus is likely to have beaten its own earnings forecast or the fiscal first-half, driven by robust sales of its digital cameras and medical equipment, the Nikkei business daily said on Saturday.
-- U-Shin Ltd T> Autoparts maker U-Shin has decided to scrap its plan to buy peer Niles Co. after a disagreement over the deal price with top shareholder RHJ International (RHJ), the Nikkei business daily reported on Saturday.
-- Toshiba Corp T> Toshiba plans to start mass-producing 30-nanometer flash memory chips by the business year ending March 2010 to better compete with South Korean rival Samsung Electronics Co Ltd, the Nikkei business daily reported on Monday.