Japan's Nikkei set to gain as yen helps, jobs data eyed

Japan's Nikkei average is likely to rise on Friday, with shares of exporters helped by a weaker yen, but gains may be limited on investor caution before a three-day weekend and US jobs data due later in the day.

Seven & I Holdings may draw attention after Japan's largest retailer posted a 25% drop in quarterly operating profit as a weak economy prompted shoppers to rein in spending, and kept its annual outlook for an 11% fall.

"Overseas stocks ended mixed, but the yen is weakening and that is positive for the stock market here," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

"But investors will likely be prone to close positions ahead of a three-day weekend and the jobs data as the data could become a turning point for future trade."

Nikkei futures traded in Chicago  closed at 10,805, up 1% from the Osaka close , pointing to a higher start.

The benchmark Nikkei is likely to move between 10,600 and 10,800, market players said. It slipped 0.5 percent the previous day to 10,681.66.

The yen hit a four-month low versus the dollar after Japan's new finance minister on Thursday said he wanted the yen to weaken more. The yen was trading around 93.60 in early Asia trade.

Investors welcome a weaker yen as it boosts exporters' profits when repatriated.

The Dow and the S&P 500 rose on Thursday after Bank of America and General Electric rallied on positive broker comments, but the Nasdaq inched down 0.1%.

Investors will focus on US non-farm payrolls data due out on Friday to wait for trading direction. The latest Reuters poll suggests the US economy stopped shedding jobs in December.

Stocks to watch
— Elpida Memory Inc, chipmakers
Earnings at chipmakers are recovering rapidly thanks to growing demand for high-tech products around the world, with Elpida Memory expected to enjoy its first operating profit in three years, the Nikkei business daily reported. Semiconductor prices have gone up on strong demand stemming from brisk sales of energy-efficient flat-panel televisions and low-priced personal computers, the paper said.

— Sony Corp
Sony said US electronics sales are looking positive after the holiday season, and that it was optimistic about meeting its full-year target for PlayStation 3 video game console sales.

— Mitsui & Co
Trading house Mitsui is set to take part in a project near Mexico City to build and operate the world's largest water treatment plant, the Nikkei business daily reported.