TOKYO, Oct 22 (Reuters) - Japan's Nikkei average is expected to edge higher on Friday, carrying over an uptrend seen in U.S. and European markets, but persistent bullishness in the yen will keep stocks under pressure.
Trading is expected to be nervous as investors are unwilling to take large positions before confirming the outcome of the Group of 20 meeting starting on Friday.
"The Nikkei will be range-bound. But the yen's strength will continue to limit gains in stocks," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"The underlying mood is not too good as there are very few incentives to buy Japanese stocks despite European and U.S. stocks having advanced in the last two sessions."
Nikkei futures traded in Chicago finished at 9,410, up 0.4 percent from the Osaka close.
The benchmark Nikkei is likely to move between 9,300 and 9,500, traders said.
The Nikkei slipped to its lowest close in three weeks on Thursday, finishing down 0.1 percent to 9,376.48, its lowest close since Sept. 30.
On Thursday, Wall Street edged higher in a volatile session as the market swung in a wide range throughout the day with investors reacting to gyrations in currency markets and relatively strong earnings took a back seat.
The Dow Jones industrial average gained 38.60 points or 0.35 percent to 11,146.57, while the Nasdaq Composite Index gained 2.28 points, or 0.09 percent, to 2,459.67.
On charts, the Nikkei could be supported at the upper level of its daily Ichimoku cloud around 9,300.
The Nikkei is also likely to find support around 9,250, a level where options-related purchases are expected to emerge, Nikko Cordial's Nishi said. ----------------------MARKET SNAPSHOT @ 2250 GMT ------------
LAST PCT CHG NET CHG S&P 500 1180.26 0.18% 2.090 USD/JPY 81.32 0.01% 0.010 10-YR US TSY YLD 2.5416 -- 0.000 SPOT GOLD 1323.29 -0.02% -0.310 US CRUDE 80.66 0.12% 0.100 DOW JONES 11146.57 0.35% 38.60 ------------------------------------------------------------- > Shares rise, whipsawed by dollar, earnings > U.S. dollar rises as euro hits $1.40 resistance > Bonds fall on data, stocks, gradualist QE talk > Gold drops 1.5 pct on euro retreat, technicals > Oil slips more than 2 pct as dollar bounces
STOCKS TO WATCH
-- Hitachi Ltd
Hitachi's operating profit for April-September is set to come to more than 200 billion yen ($2.46 billion), beating its forecast of 170 billion yen, the financial daily Nikkei reported.
The earnings of Japan's biggest electronics conglomerate were supported by strong economic growth in emerging markets, resulting in higher demand for such items as digital consumer electronics.
-- Sumitomo Corp and Mazda Motor Corp
Sumitomo is in the final stages of talks to buy an additional stake in Mazda from Ford Motor Co, the Nikkei business daily reported.
The trading house, which holds a stake of about 0.4 percent in Mazda, is expected to buy about another 1 percent in the Japanese automaker, the paper said.
-- Toshiba Corp
The Japanese electronics firm said on Thursday its first-half operating profit would likely beat its previous forecast by 49 percent thanks to strong sales of semiconductors and liquid crystal displays.
-- Toyota Motor Corp
Toyota said on Thursday it would begin producing its best-selling Prius hybrid vehicle in Thailand from November. Toyota already produces and sells its Camry Hybrid sedan in Thailand, the company said in a news release. ($1=81.34 Yen) (Reporting by Chikafumi Hodo; Editing by Michael Watson)