TOKYO, Sept 8 (Reuters) - Japan's Nikkei stock average is likely to edge higher on Tuesday, bolstered by gains in European stocks, with a slight weakening of the yen boosting Canon Inc and other exporters.
But trade is likely to remain thin in the wake of a U.S. holiday on Monday and ahead of the settlement of Nikkei futures and options on Friday, though analysts said activity was likely to pick up as the week wears on.
"European share indexes all gained, Nikkei futures traded in Singapore are up slightly, and the yen is slightly weaker against the euro," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.
"There's likely to be a swing back towards risk-taking."
European shares gained broadly, with the pan-European FTSEurofirst 300 rising 1.4 percent to 975.90 points as financials, among others, boosted the index.
The euro edged up 0.1 percent against the yen to 133.32 yen, while the dollar slipped 0.1 percent against the Japanese currency to 93.02 yen.
Exporters are likely to gain as a result of the yen's retreat against the euro, with attention on the movement of Chinese shares.
The benchmark Nikkei is likely to move between 10,200 and 10,400. It closed at 10,320.94 on Monday after a day of extremely thin trade, with turnover volume at its lowest since mid-July.
In a sign the Nikkei may open higher, Nikkei futures traded in Singapore edged up 0.5 percent from their Osaka close of 10,310. STOCKS TO WATCH
-- Toho Co Ltd
Toho, Japan's largest movie company, said the country's fading interest in Hollywood movies has cast a cloud over its growth prospects and it was aiming to cut costs to offset sluggish box office sales.
-- Showa Shell Sekiyu KK
Oil refiner Showa Shell Sekiyu said it would invest $1.1 billion to build a new thin-film solar cell plant, as it chases First Solar in a growing market.
-- Asics Corp, Snow Brand Milk Products
Sporting goods maker Asics will be added to the Nikkei 300 on Sept. 25, the Nikkei Inc said on Monday.
It will replace Snow Brand Milk Products, which will be delisted in connection with forming a joint holding company.
-- Hitachi Software Engineering
Hitachi Software Engineering will be delisted from the Nikkei 300 on Oct. 2, the Nikkei Inc said on Monday, two months after Hitachi Ltd said it would launch a tender offer for Hitachi Software Engineering to bring it fully under its control. (Reporting by Elaine Lies; Editing by Chris Gallagher)