TOKYO, Aug 28 (Reuters) - The Nikkei average is expected to rise on Friday after the previous day's decline, with investors encouraged by a strong run-up in U.S. stocks, while Japan's Aug. 30 election and moves in Chinese stocks remain in focus.
Analysts say investors have factored in a big win by Japan's opposition Democratic Party in the election and the focus is now shifting to post-election events, including who will be the next finance and economy ministers.
Toyota Motor Corp may draw attention after industry sources said on Thursday it has decided to end production at a California plant it has shared with General Motors for 25 years. The United Auto Workers union called the decision "devastating news for thousands of workers".
"A change of government in Japan is finally getting closer to becoming a reality and the market could have a strong finish if investors start to expect gains following the results of the election," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.
"Chinese stocks will likely be in focus during the day after worries that China would curb industrial overcapacity hurt the market yesterday."
Nikkei futures traded in Chicago closed at 10,570 on Thursday, up 0.6 percent from the Osaka close.
Market participants expect the benchmark Nikkei to move between 10,400 and 10,600 on Friday.
The benchmark fell 1.6 percent the previous day to end at 10,473.97. Market players said news from China helped curb investor confidence after the country's state council said on Wednesday it would restrict licences for steel and cement production to clamp down on overcapacity.
The Dow industrials posted an eighth straight day of gains on Thursday led by Boeing Co. The U.S. aircraft manufacturer said its long-delayed 787 Dreamliner would make its first flight by the end of the year. ----------------------MARKET SNAPSHOT @ 2257 GMT ------------
LAST PCT CHG NET CHG S&P 500 1030.98 0.28% 2.860 USD/JPY 93.58 0.12% 0.110 10-YR US TSY YLD 3.4643 -- 0.000 SPOT GOLD 948.9 0.23% 2.150 US CRUDE 72.67 0.25% 0.130 DOW JONES 9580.63 0.39% 37.11 ------------------------------------------------------------- > Wall St gains on oil rebound; Boeing, financials up > Dollar hits multiweek lows vs yen, euro > Improving stocks outshine solid bond auction > Gold rises on dollar weakness, economic optimism > Oil bounces back above $72 as Wall Street reverses
STOCKS TO WATCH
-- GS Yuasa Corp, Nippon Mining Holdings
GS Yuasa and Nippon Mining & Metals, a unit of Nippon Mining Holdings, each plan to start collecting lithium ion batteries from scrapped electric and hybrid vehicles to recycle lithium, the Nikkei business daily reported on Friday.
-- Takeda Pharmaceutical
Moody's changed Aa1 rating outlook for Takeda Pharmaceutical, Japan's largest drugmaker, to negative. The credit rating agency said Takeda's top-line growth and earnings may be pressured by a series of U.S. patent expirations for core products.
-- Murata Manufacturing Co
Electronics parts maker Murata said on Thursday it will pay 664 million yen ($7.1 million) to buy 1 million shares in Tokyo Denpa Co, a maker of quartz oscillators and filters.
-- Toyo Tire & Rubber Co
Toyo Tire & Rubber said on Thursday it will invest 10 billion yen to build a tyre factory in China.
The new plant will produce tyres for passenger cars and light trucks. The annual output will be 2 million tyres. (Reporting by Aiko Hayashi; Editing by Michael Watson)