TOKYO, June 29 (Reuters) - Japan's Nikkei average is seen likely to edge higher on Monday, although gains could be capped if industrial output figures disappoint or the yen rises against the dollar, market analysts said.
Daiwa Securities Group may be in focus after saying on Friday it would raise about $2.5 billion in its first share sale in 20 years as it looks to expand overseas and bolster its domestic retail operations. The Nikkei is likely to inch higher and to make a try for the 10,000 level in the near term, said Hiroichi Nishi, general manager in the equity division of Nikko Cordial Securities.
"That could happen if bright signs are confirmed," Nishi said, adding that in addition to Monday's industrial output the focus this week would be on economic data such as the Bank of Japan's tankan business sentiment survey due on Wednesday.
Market analysts said the Nikkei is likely to move between 9,800 and 10,000. It closed at 9,877.39 on Friday.
In a sign the Nikkei is likely to open higher, Nikkei futures traded in Chicago closed at 9,955, 0.6 percent above their Osaka close.
Masayoshi Yano, a senior market analyst at Meiwa Securities, said Tokyo shares could attract buying if industrial output beats forecasts, but a worse-than-expected result could weigh on the Nikkei.
Tokyo shares could also face selling pressure if the dollar were to fall below 95 yen, Yano said.
The dollar fell broadly on Friday after China renewed its call for a super-sovereign reserve currency and as improving appetite for risk dented the greenback's safe-haven allure.
The dollar edged up 0.2 percent from late U.S. trading on Friday to 95.35 yen. A fall in the dollar to below 94.88 yen hit on trading platform EBS earlier in June would take the dollar to its lowest level in about a month.
Industrial output is seen likely to have risen 7 percent month-on-month in May, according to the median market forecast in a Reuters survey. That would be the biggest monthly gain since 1953.
The U.S. Nasdaq rose on Friday, on strong demand for Palm Inc's Pre smartphone, while the Dow was dragged lower by sliding oil prices and strength in some financial stocks helped cushion the S&P 500's decline. ----------------------MARKET SNAPSHOT @ 2207 GMT ------------
LAST PCT CHG NET CHG S&P 500 918.9 -0.15% -1.360 USD/JPY 95.23 -0.02% -0.020 10-YR US TSY YLD 3.5286 -- 0.000 SPOT GOLD 934.5 -0.38% -3.550 US CRUDE 69.09 -0.10% -0.070 DOW JONES 8438.39 -0.40% -34.01 ------------------------------------------------------------- > Palm lifts Nasdaq, but oil drags Dow down > US dollar slides on China comments; risk appetite up > Week's debt auction success again supports bonds > Gold rises slightly as dollar broadly drops > Oil drops on Wall Street, Nigeria amnesty report STOCKS TO WATCH
-- Takeda Pharmaceutical
Takeda, Japan's largest drugmaker, said on Saturday a key diabetes drug had failed to get approval from U.S. regulators who had asked for additional safety tests, a process the company predicts could take at least two years. The delay in approval of alogliptin, which Takeda has positioned as a successor to its top-selling drug Actos, was largely expected after the U.S. Food and Drug Administration (FDA) said in March it wanted more data.
-- Sony Corp
Sony is considering developing a cellphone-game gear hybrid in a bid to better compete with Apple Inc's highly popular iPod and iPhone, the Nikkei business daily said on Saturday.
-- Elpida Memory Inc
PC chip maker Elpida will receive financial support of about 200 billion yen ($2.10 billion) from the government and public and private-sector banks, the Nikkei business daily said on Saturday.
-- Osaka Securities Exchange Co plans to merge with subsidiary Jasdaq Securities Exchange Inc around April 2010, ahead of the scheduled integration of the Jasdaq and OSE Hercules start-up markets in the autumn of that year, the Nikkei business daily reported on Saturday.
-- Sanyo Electric Co Ltd
Sanyo plans to boost its capacity to make auto-use nickel-metal hydride batteries by 75 percent to 3.5 million cells a month by March 2010 to meet growing demand, Sanyo Executive Vice President Mitsuru Homma said during the company's annual shareholders' meeting on Friday.
-- Komatsu Ltd
Komatsu's president, Kunio Noji, said on Friday that sales in China are growing fast, aided by an economic stimulus package, but demand in rich nations is much weaker than expected. ($1=95.13 Yen) (Reporting by Masayuki Kitano; Editing by Michael Watson)