TOKYO, April 1 (Reuters) - Japan's Nikkei average is expected to move in a narrow range on Friday as investors refrain from trading actively ahead of U.S. payroll data, with shares likely to be supported by a weaker yen against the dollar.
Japanese shares could face slight selling pressure after Wall Street stocks fell the previous day, but the market might lack clear direction with investors wary about taking fresh positions ahead of the weekend, after the Nikkei posted solid gains over the last two sessions.
"Investors are expected to be more flexible after the start of the new financial year from today, but for now the Nikkei is expected to be trapped in a narrow range ahead of the weekend and the U.S. jobs data," said Hiroichi Nishi, general manager at SMBC Nikko Securities' equity marketing section.
"The market looks a bit overheated after seeing strong gains this week, but thanks to the weaker yen there is no reason to sell stocks strongly," Nishi said.
The dollar advanced to a fresh three-week high above 83.30 yen in early Asian trade on Friday.
On Thursday, the Nikkei closed up 0.5 percent at 9,755.10. The broader Topix index rose 0.4 percent to 869.38.
Nikkei futures on Chicago <2NKc1> rose to 9,735 from the
Osaka close
The Nikkei is expected to trade between 9,650 and 9,800 on Friday.
The Nikkei is likely to face some resistance above 9,750, where options-related sales are expected to emerge, analysts said.
Technical resistance is also expected around the 200-day
moving average, which is currently at 9,820.
----------------------MARKET SNAPSHOT @ 2259 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1325.83 -0.18% -2.430
USD/JPY 83.36 0.22% 0.180
10-YR US TSY YLD 3.4684 -- 0.024
SPOT GOLD 1432.39 -0.28% -4.090
US CRUDE
STOCKS TO WATCH
-- Tohoku Electric Power
Utility Tohoku Electric said it will look at restarting its two nuclear power plants after taking stronger safety measures, the Nikkei daily reported. [ID:nL3E7EV3IM]
-- Nippon Yusen
Nippon Yusen, Japan's top shipping company, plans to spend about 1.8 trillion yen to increase the number of vessels including liquefied natural gas carriers and automobile carriers over the next 6 years from the current 2011 financial year starting April 1 to attract demand from growing Asian markets, the financial daily Nikkei reported.
-- Honda Motor , Mazda Motor
Honda and Mazda on Thursday became the latest major automakers to say they would resume some production in Japan after halting plant operations following the earthquake and tsunami of March 11. [ID:nN31240641] (Reporting by Chikafumi Hodo; Editing by Chris Gallagher) Reuters Terminal users can see other related news and rates by double-clicking on: All Nikkei indices <0#.NIKKEI> All shares listed on The benchmark Nikkei ended the day up 1.1 percent or 101.12 points at 9,536.13, Nikkei-225 <0#.N225> N225 index TOPIX index Nikkei Japan 1000 TOPIX sector data Nikkei 300 index TOPIX futures data <0#JTI:> Osaka N225 data <0#JNI:> Chicago N225 data <0#NK:> Top 30 by volume Top 30 by value Total volume Total value 1st section sector RICs All TSE weighted avg Top 30 gainers by pct Top 30 losers by pct Top 30 net gainers Top 30 net losers
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