TOKYO, Dec 25 (Reuters) - Japan's Nikkei share average is likely to rise on Thursday as investors pick up battered exporters and other stocks after Wall Street gained in a holiday-shortened session on hopes for the economy and bargain hunting.
"The market will likely be rangebound as volume was thin in half-day trade in New York and we lack any significant factors for trade here," said Yoku Ihara, manager at Retela Crea Securities.
"The Nikkei will probably edge up but hover around 8,500."
Market players expect trade in Japan will also be light on Thursday as many investors are away for the holidays.
Nikkei futures traded in Chicago closed at 8,630 on Wednesday, 80 points above their close in Osaka.
Market participants expect the benchmark Nikkei to trade between 8,400 and 8,600 on Thursday. It fell 2.4 percent the previous day to end at 8,517.10.
U.S. trading ended at 1 p.m. (1800 GMT) on Wednesday in observance of Christmas Eve. U.S. markets will be closed on Thursday for Christmas Day. STOCKS TO WATCH
-- Isuzu Motors Ltd
Japanese truck maker Isuzu plans to implement temporary pay cuts for all of its 8,000 full-time workers in Japan in response to a steep sales decline, the Nikkei financial daily reported.
-- Nintendo, Dentsu
Nintendo will partner with leading advertising agency Dentsu on a video service exclusively for the Wii game console, The Nikkei business daily said on Thursday.
-- Asahi Breweries
British confectionery maker Cadbury Plc agreed to sell its Australian beverage business to Asahi Breweries for 550 million pounds ($811 million), completing its exit from soft drinks.
-- Funai Electric Co
Funai Electric said it would sell DVD players and recorders under the Philips brand directly to consumers in North America, in a deal that sent its shares up 7 percent. (Reporting by Aiko Hayashi; Editing by Hugh Lawson)