TOKYO, Oct 22 (Reuters) - Japan's Nikkei average is likely to start lower on Thursday after U.S. stocks slipped in a late sell-off in financial shares, but trade may be subdued overall as investors await the upcoming Japanese earnings season.
Honda Motor Co will likely draw attention after the Nikkei business daily said the automaker will likely post a first-half operating profit of 60 billion yen ($660 million), beating its forecast for a loss on cost-cutting and sales of fuel-efficient cars.
"The market lacks energy and there are few reasons to buy Japanese stocks, particularly because the new government's policies have yielded little results so far," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"But at the same time, falls should be limited as the global economy is on track for a recovery and global stocks are on an upward trend. Investors also want to see how Japanese earnings will pan out."
Energy-linked shares such as trading houses may benefit after oil jumped nearly 3 percent to settle above $81 a barrel on Wednesday, market players said.
Nikkei futures traded in Chicago closed at 10,270.00 on Wednesday, down 0.6 percent from the Osaka close, pointing to a lower start.
The benchmark Nikkei is likely to move between 10,200 to 10,300 on Thursday, market players said. It ended flat the previous day at 10,333.39, after hitting a three-week closing high on Tuesday.
Japan's earnings season will swing into full gear next week.
The S&P 500 Index fell 0.9 percent on Wednesday. An influential bank analyst recommended selling Wells Fargo shares, prompting a sell-off in financial shares, and a wider-than-expected loss from Boeing disappointed investors. STOCKS TO WATCH
-- Toshiba Corp
Toshiba is likely to report an operating profit of 1-2 billion yen ($11 million-$22 million) for the April-September period on cost cuts and robust earnings from its semiconductor and nuclear power plant businesses, the Nikkei business daily said.
-- Japan Airlines Corp (JAL)
Japan Airlines' net loss may balloon to as much as about 500 billion yen ($5.5 billion) for the year ending in March, as the struggling carrier plans to book hefty restructuring charges, Yomiuri newspaper reported on Thursday.
A government-appointed task force crafting a revival plan for JAL has asked the Development Bank of Japan to provide more than 50 billion yen ($550 million) in debt waivers and debt-for-equity swaps, the Nikkei reported.
-- Itochu Corp, Uny Co
Trading house Itochu will obtain a three percent interest in Uny, the No. 4 Japanese supermarket operator, to enhance product procurement and distribution efficiency and develop a Chinese supermarket chain, the Nikkei reported. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)