TOKYO, Oct 19 (Reuters) - Japan's Nikkei stock average is likely to dip on Monday, tracking falls in U.S. stocks after disappointing results, but slides will be limited by firmness in shares of exporters such as Canon Inc on a weaker yen.
The fate of struggling Japan Airlines Corp (JAL) may also weigh on the market, market players said. JAL shares fell 26 percent last week.
"The Nikkei has gained some 500 points since October 5, prompting concern about high valuation, so it wouldn't be at all surprising if it slips a little," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
"Expect a bit of a dip today and then consolidation."
Japan's biggest banks are likely to reject the government's restructuring plan for JAL, the Nikkei newspaper reported on Saturday while the Sankei newspaper reported on Sunday that Japanese government task force set up to keep JAL afloat has decided to tap a state-backed institution tasked with revitalising struggling companies.
U.S. stocks fell on Friday after disappointing results from General Electric Co and Bank of America Corp demonstrated the road to economic recovery will be bumpy. [.N}
The dollar was holding onto gains above 91 yen, which analysts said should help keep exporters relatively firm. Investors fret over a strong yen because it eats into exporter profits when repatriated.
Resource-related shares were also expected to do relatively well after crude oil rose to a one-year high above $78 a barrel on Friday after data showed U.S. industrial production expanded in September, boosting optimism for an economic recovery.
Market players said the benchmark Nikkei is likely to move between 10,100 and 10,250 after closing at 10,257.56 on Friday, a three-week closing high.
In a sign the Nikkei may start lower, Nikkei futures traded in Chicago finished down 0.5 percent from the Osaka close of 10,270. STOCKS TO WATCH
-- Casio Computer Co Ltd Casio revised down its annual outlook to an operating loss of 5 billion yen instead of its previous forecast for a 15 billion yen profit for the year to March, due to a bigger-than-expected fall in sales of its mobile phones and digital cameras.
-- Nissan Shatai
Nissan Shatai revised up its earnings estimate for its April-September fiscal first half to an operating profit of 9.3 billion yen from a previous estimate for a 2.7 billion yen loss, due to solid sales growth of cars in Japan thanks to a tax cut on fuel-efficient cars and better sales of pickup trucks abroad.
-- Dainippon Sumitomo Pharma
Dainippon Sumitomo said it has received approval to sell its newly-developed Miripla treatment for liver cell cancer in Japan. The drugmaker, which recently bought U.S. drugmaker Sepracor, is considering whether or not to start the clinical studies of the drug outside Japan with an aim to sell it in offshore markets.
-- Nissin Foods Holdings
The maker of instant noodle raised its full-year operating profit forecast by 15 percent, buoyed by lower costs of commodities such as flour in North America and smaller promotional spending in Japan.
The company said it now expects operating profit of 26.5 billion yen for the year ending in March, up from 23 billion yen in the previous estimate and matching a mean forecast in a poll of 11 analysts by Thomson Reuters I/B/E/S. (Reporting by Elaine Lies; Editing by Edwina Gibbs)