TOKYO, April 25 (Reuters) - Japan's Nikkei is expected to trade in a narrow range on Monday as investors cautiously await corporate earnings reports due this week, while mining shares are likely to outperform after gold prices surged to a record high.
Analysts said the market's direction will hinge on upcoming earnings reports because they will provide the first hard evidence of the extent of the damage from last month's devastating earthquake.
Any gains on Monday will likely be limited with volume staying thin as investors are reluctant to make big bets before Canon Inc , Sony Corp and construction machinery maker Komatsu Ltd report results.
"Major earnings will start coming out after the market close, so investors will probably stay on the sidelines today," said Yumi Nishimura, a senior market analyst at Daiwa Securities. Immediate support is seen at the Nikkei's 25-day moving average of 9,590, she added.
But commodity shares, such as mining firms and trading houses, may outperform on higher gold prices, analysts said.
Spot gold surged to a lifetime high on Friday in thin holiday trade, hitting a record for a sixth consecutive session on a weak dollar and factors ranging from geopolitical uncertainty to inflation concerns. [ID:nL3E7FM0BI]
The benchmark Nikkei average ended almost flat at 9,682.21 on Friday, while the broader Topix was also steady at 842.18.
Analysts said the Nikkei is expected to trade between 9,600-9,750 on Monday, while midterm resistance is seen at its 200-day moving average of 9,805. ----------------------MARKET SNAPSHOT @ 2256 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1337.38 0.53% 7.020
USD/JPY 81.89 0.1% 0.080
10-YR US TSY YLD 3.3945 -- 0.000
SPOT GOLD 1511.6 0.54% 8.050
US CRUDE
> Wall St ends strong week with new earnings attitude > Dollar settles near 3-year trough, eyes record low > Yields dip ahead of Fed on slowdown fears > Gold soars to record in sixth straight session > Oil lifted by weak dollar in volatile trade
STOCKS TO WATCH
--Komatsu Ltd
Construction equipment maker Komatsu is expected to report a 30 percent rise in operating profit to about 300 billion yen in the current fiscal year, close to the record 332.8 billion yen of fiscal 2007, the Nikkei business daily reported.
--JX Holdings Inc
JX Holdings likely suffered extraordinary losses of more than 100 billion yen for the year ended in March due to damage at its oil refineries and other facilities from the Great East Japan Earthquake, the Nikkei business daily reported.
--Nippon Steel Corp
Nippon Steel is expected to report a consolidated net profit of about 90 billion yen for the year ended March 31 despite damage from last month's disaster, while the relatively unscathed Kobe Steel Ltd is seen enjoying a sevenfold increase, the Nikkei business daily reported.
Nippon Steel posted a net loss of 11.5 billion yen for fiscal 2009, the Nikkei said. (Reporting by Ayai Tomisawa; Editing by Chris Gallagher)