TOKYO, Sept 28 (Reuters) - Japan's Nikkei average is likely to fall on Monday, with exporters seen hurt by a sharply stronger yen and after U.S. stocks slipped on disappointing housing and durable goods data, which fuelled worries about the strength of a U.S. recovery.
The U.S. dollar slid to as low as 88.46 yen in early Asian trade on Monday, with traders saying chart players and speculators were pushing the yen higher, taking its end below 90 yen in New York on Friday as a sign to sell.
"Many exporters have set their currency rate assumption at 90-95 yen, and if the dlr/yen were stay below 90 yen, the impact on their earnings would be huge and that's a concern," said Yutaka Miura, senior technical analyst at Mizuho Securities.
"The stock markets have been reacting more to negative news than to positive news recently, and that's also capping further gains and providing ground for profit-taking."
Sanyo Electric Co Ltd may draw attention after the company said it is likely to post a net loss for the year to March, instead of its previous estimate to break even, as costs for its voluntary retirement scheme and a product recall weigh.
Nikkei futures traded in Chicago ended Friday at 10,200, down 1.1 percent from the Osaka close, pointing to a lower start.
The benchmark Nikkei is likely to move between 10,100 and 10,350 on Monday, market players said. It slid 2.6 percent on Friday to end at 10,265.98.
In a holiday-shortened week, the Nikkei slipped 1 percent last week, although it had gained 16 percent since the beginning of the year.
The S&P 500 Index slipped 0.61 percent after economic reports showed that new orders for long-lasting U.S. manufactured goods fell by their biggest margin in seven months, while August sales of new home fell short of Wall Street's expectations. STOCKS TO WATCH
-- Sumitomo Forestry Co
Sumitomo Forestry has acquired an interest in Australia's fourth-ranked homebuilder, Henley Properties Group, aiming to make an full entry into that nation's growing housing market, the Nikkei business daily reported on Monday. -- Toyota Motor Corp
Toyota raised its global sales forecast for the year to March 2010 by 3 percent to 6.7 million cars, the Tokyo Shimbun daily reported on Saturday, in the latest sign of a nascent recovery in auto demand.
Separately, the Nikkei business daily reported on Saturday that New United Motor Manufacturing Inc (NUMMI), a joint venture between Toyota and the former General Motors Corp in California, will shed its entire workforce of about 4,700 by next spring.
-- Astellas Pharma
Astellas, Japan's second-largest drugmaker, said the U.S. Food and Drug Administration has approved a six-month extension of patent protection for its prostate drug Flomax under its pediatric exclusivity rules. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)