TOKYO, Aug 3 (Reuters) - Japan's Nikkei average is likely to move narrowly on Monday, with investors cautious ahead of more corporate earnings reports and after Wall Street only showed a small rise in the wake of data showing the U.S. economy contracted less than expected.
The market will be watching banking shares after Mizuho Financial Group, Japan's No.2 bank, said it is slipping further behind bigger rival Mitsubishi UFJ Financial Group, with MUFG posting its first profit in three quarters on Friday.
Companies scheduled to announce results later in the day include Panasonic Corp, Astellas Pharma and Suzuki Motor Corp. Investors also await earnings reports from Toyota Motor Corp on Tuesday.
"The market will likely be range-bound as several technical indicators point to overheating, while investors will carefully watch earnings results for more clues," said Hiroichi Nishi, general manager at Nikko Cordial Securities.
"But falls are also likely limited, supported by optimism about a recovery in the economy and the bottoming-out in corporate earnings."
The U.S. government's first estimate of gross domestic product showed it fell at a 1.0 percent annual rate after tumbling 6.4 percent in the January-March period. Economists had expected a 1.5 percent decline in the second quarter.
Nikkei futures traded in Chicago dipped 0.1 percent from their Osaka close on Friday, pointing to a weaker start.
Market participants expect the Nikkei to move between 10,200 and 10,450 on Monday. It rose 1.9 percent on Friday to end at 10,356.83, its highest finish in 10 months.
The benchmark Nikkei's Friday rise brought its gain for the week to 4.1 percent, while it also booked a 4 percent climb for July. The monthly rise was its fifth straight month of gains, its longest run since 2005.
The Standard & Poor's 500 Index ended 0.1 percent higher on Friday. > S&P 500 sees best 5-month streak since 1938 > U.S. dollar slides to 2009 low as risk appetite rises > Bonds rally as GDP data signal low inflation > Gold races to 4-day high as dlr slips to 2009 low > Oil jumps nearly 4 pct on economic optimism STOCKS TO WATCH
-- Daiwa Securities Group Inc
Daiwa Securities Group, Japan's second-largest brokerage, returned to profit after posting three straight quarters of losses, helped by a jump in underwriting fees.
-- Tokyo Electron
Tokyo Electron, the world's second-largest chip equipment maker, reported a smaller-than-expected quarterly loss and raised its annual outlook as orders start to rise in the latest sign of a spreading recovery in the chip sector.
-- Asahi Breweries
The beer maker cut this year's profit forecast after its domestic beer sales fell short of its expectation. The company said it now expects operating profit to come at 88 billion yen this year, down 4.3 percent from the previous estimate and roughly in line with average 87 billion yen forecast in a poll of 11 analysts by Thomson Reuters.
-- Ricoh Co Ltd
Ricoh shares could be undervalued as investors overlook the benefits of two healthy acquisitions that could help the stock rise 30 percent over the next year, Barron's reported. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)