TOKYO, March 25 (Reuters) - The Nikkei share average is expected to rise on Friday, helped by gains in U.S. stocks on optimism about upcoming earnings reports, although investors will continue to cautiously monitor developments at Japan's troubled nuclear power plant.
Analysts said dip-buying may lift the overall market as some technical charts are showing that Japan stocks are sharply oversold. The Nikkei now trades at 7.2 percent below its 25-day moving average of 10,168.
"Also, more than 60 percent of stocks on the Tokyo stock exchange's main board are trading below their book value, so it's time to buy back while watching the plant problems carefully," said Hiroichi Nishi, general manager at Nikko Cordial Securities.
But ahead of the weekend, investors may not increase their positions, other market observers said.
"Despite optimism towards earnings in the U.S., investors are alert that more Japanese companies may cut annual dividends or lower their full-year estimates for this fiscal year," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets. "The market may stay strong in the morning session, but gains may be trimmed in the afternoon."
Nikkei futures last traded at 9530 in Chicago , 180 points above the close in Osaka .
The benchmark Nikkei average fell 0.2 percent, or 14.46 points, to 9,435.01 on Thursday. The Topix slipped 0.8 percent to 853.95.
The Nikkei is expected to trade between 9450-9650 on Friday, analysts said. ----------------------MARKET SNAPSHOT @ 2306 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 1309.66 0.93% 12.120 USD/JPY 81 0.02% 0.020 10-YR US TSY YLD 3.4074 -- 0.000 SPOT GOLD 1431.19 0.12% 1.700 US CRUDE 105.52 -0.08% -0.080 DOW JONES 12170.56 0.70% 84.54 -------------------------------------------------------------
> Earnings hope lifts stocks, S&P above key resistance > EU summit optimism pushes euro higher vs dollar > Traders poised to cash in on curve-flatteners > Gold retreats after record on technical selling > Oil steady, market eyes Libya, Mideast
STOCKS TO WATCH
--Nichirei Corp , Itochu Corp
Food processor Nichirei will join forces with the Itochu group in the frozen-food business, taking on most of the lost production at a tsunami-damaged factory operated by an Itochu subsidiary in northern Japan, the Nikkei business daily learned Thursday.
--Tokyo Electric Power Co
The government and Tokyo Electric Power are exploring ways to avoid rolling blackouts this coming winter, focusing on thermal power generation using liquefied natural gas, the Nikkei business daily reported.
--Honda Motor Co
Honda said Thursday that its automobile plants in Saitama and Mie prefectures will not resume operations until April 3 because parts suppliers are reeling from the March 11 earthquake and tsunami. (Reporting by Ayai Tomisawa; Editing by Chris Gallagher)