TOKYO, June 8 (Reuters) - Japan's Nikkei average is likely to rise on Monday, buoyed by exporter shares on a weaker yen and optimism about a recovery for the U.S. economy after data showed the United States shed fewer jobs than expected in May.
Toyota Motor Corp may be in focus after the Nikkei business daily said on Sunday that Toyota, the world's biggest automaker, is targeting 100 billion yen ($1.1 billion) in cost cuts for compact car production.
The U.S. Labor Department reported on Friday employers cut 345,000 jobs in May -- substantially less than analysts had forecast -- but the U.S. unemployment rate hit 9.4 percent, its highest since 1983.
U.S. stocks flip-flopped throughout Friday's session, with the major indexes ending split as investors paused to consider conflicting signals in the jobs data.
"Although U.S. stocks ended mixed after the jobs data, growing hopes for a U.S. economic recovery and the weakening yen against the dollar are positive factors for Japanese stocks," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.
"But once the Nikkei trades above 9,800, investors will likely take a wait-and see stance to see whether the yen will further weaken against the dollar and as some U.S. stocks such as chipmakers slid on Friday."
Nikkei futures traded in Chicago ended Friday trade at 9,885, up 1.1 percent from the Osaka close, pointing to a higher start.
Market participants expect the benchmark Nikkei to move between 9,700 and 9,900 on Monday. It rose 1 percent on Friday to end at 9,768.01, its highest close since early October. The index gained 2.6 percent on the week. > Wall St ends mixed after U.S. jobless rate jumps > Dollar gains, cheered by U.S. jobs report > Bonds tumble as jobs data ignite rate-hike fear > Gold falls toward $950/oz on dollar rally > Oil falls after touching 7-month high over $70 STOCKS TO WATCH
-- Advantest Corp, Tokyo Electron Ltd, other chip-related shares
Intel Corp, the world's top chip maker slid on Friday after an industry group forecast a steep drop in global chip sales. The Philadelphia semiconductor index dropped nearly 2 percent.
-- JGC Corp
Plant engineering firm JGC has won a 150 billion yen ($1.5 billion) order for a natural gas project in Algeria, the Nikkei business daily reported on Monday.
-- Tokyo Electric Power Co (TEPCO)
Steam leaked from part of a pump carrying water to the No. 7 nuclear reactor in the quake-hit Kashiwazaki-Kariwa nuclear plant in northern Japan run by TEPCO on Saturday, but the leak was soon fixed, Kyodo news agency said.
-- Iwataya Co Ltd
Retailer Isetan Mitsukoshi Holdings may launch a tender offer for the 49 percent stake it does not already own in department store Iwataya as early as next month, the Nikkei said on Saturday. Iwataya is listed on the Fukuoka stock exchange. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)