TOKYO, April 14 (Reuters) - Japan's Nikkei average is expected to trade in a tight range in low volume on Thursday, with tech shares poised to outperform after their U.S. peers posted strong gains overnight.
JPMorgan Chase & Co fell after posting earnings that beat expectations, suggesting strong results on Wall Street have already been priced into the market's recent rally, giving little incentive to aggressively chase the Nikkei higher, players said.
Tokyo stocks will probably open mildly lower after Nikkei
futures in Chicago <2NKc1> last traded at 9,595, down from the
Osaka close
Oil-related companies such as Japan's largest oil and gas developer, Inpex Corp , may bounce back, snapping two days of losses after oil prices were lifted on data showing U.S. gasoline stockpiles plunged last week and on the simmering Libyan conflict.
"The market is waiting for earnings, and until then it's likely to stay relatively calm," said Kazuhiro Takahashi, general manager at Daiwa Securities.
"Foreign players may be buying on dips, so shares are also unlikely to fall a lot," said Takahashi, adding that unless we see a few positive surprises during the upcoming earnings season, the Nikkei will find it hard to break above 9,800.
Tech shares may outperform as EMC Corp led gains in the Wall Street tech sector after a Goldman Sachs analyst said he expects a better-than-consensus quarter for the top maker of corporate data storage equipment.[ID:nN13260799]
The benchmark Nikkei average closed up 0.9 percent, or 85.92 points, at 9,641.18 on Wednesday, while the broader Topix gained 0.7 percent to 844.59.
The most actively traded share since the quake, Tokyo Electric (Tepco) , is poised to stay in focus on Thursday.
The operator of Japan's crippled nuclear plant said on Wednesday it was still working on a detailed plan to end the country's nuclear crisis a month after it began, as tests showed radiation levels in the sea near the complex had spiked.[ID:nL3E7FD0XJ]
Tepco's shares surged on Wednesday on a report that its
liabilities stemming from the nuclear crisis may be capped but
other utilities slid as they may have to help foot the bill.
----------------------MARKET SNAPSHOT @ 2218 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1314.41 0.02% 0.250
USD/JPY 83.81 -0.07% -0.060
10-YR US TSY YLD 3.4585 -- -0.034
SPOT GOLD 1456.85 0.15% 2.240
US CRUDE
> Wall St encouraged by tech, less so by JPMorgan > US dollar buoyed by Obama cuts; bearish views hold > Long bond yields may need to rise for auction > Gold rises as dollar eases; Fed policy eyed > Oil rises on sharp U.S. gasoline draw, Libya
STOCKS TO WATCH
--Isuzu Motors
Volkswagen said a decision on a possible stake in Isuzu Motors was currently not on the agenda after a report it was considering buying all or part of the Japanese truckmaker.
VW and MAN , the German truckmaker that is 30 percent owned by VW, also discussed the possibility of MAN taking a stake in Isuzu, monthly Manager Magazin said in an excerpt of an article to be published on Friday.[ID:nLDE73C1GJ] --Fujitsu Ltd
Fujitsu said it will build an optical fibre network capable of providing broadband services to some 5 million homes in the rural parts of the United Kingdom, the Nikkei business daily reported.[ID:nL3E7FD34N] -- Sharp Corp ; JS Group Corp
The two firms have agreed to set up a joint venture as early as this year to develop and sell energy-saving housing equipment, the Nikkei business daily said.[ID:nL3E7FD31K] --Nissan Motor Corp
The Renault-Nissan Alliance plans to invest an initial 230 million euros ($333.6 million) in producing a new diesel motor at Renault's Cleon factory in France, Renault said on Wednesday. [ID:nLDE73C1BC] --Inpex Corp
Japan's top oil and gas developer, Inpex Corp , is on track to make a final investment decision on its liquefied natural gas (LNG) project in Australia in the fourth quarter of 2011, the company said on Wednesday. [ID:nL3E7FD1AV] --Modec
Modec said on Wednesday that Woodside Petroleum has named it as one of two companies to conduct front-end engineering design (FEED) for two dry tree units for the Browse liquefied natural gas project in Western Australia. [ID:nL3E7FD12P] --Aeon Delight Co
Aeon Delight, a unit of Aeon Co , which cleans and manages commercial sites and other locations, will buy housekeeping services Provider Kajitaku Inc for about 1 billion yen, the Nikkei business daily reported.[ID:nL3E7FD2ZE] --Kinki Sharyo Co Ltd
Noveko International Inc said it entered into an agreement to supply filters to a unit of Japanese railroad vehicles manufacturer Kinki Sharyo Co Ltd , sending the Canadian company's shares up as much as 18 percent. [ID:nL3E7FD2II]
(Reporting by Antoni Slodkowski)