Nikkei set to move in narrow range, exporters down

TOKYO, Nov 9 (Reuters) - Japan's Nikkei average is expected
to trade in a narrow range on Monday, moving in and out of
positive territory after mixed U.S. jobs data, with Canon Inc
(7751.T: Quote, Profile, Research) and other exporters lower on a stronger yen.

The U.S. jobless rate unexpectedly jumped to 10.2 percent in
October, a 26-½ year high, but job losses for August and
September were revised to show 91,000 fewer jobs were lost than
previously reported, taking some of the sting out of the report.
[ID:nN06178752]

Market analysts said the results were hard to interpret and
that the Nikkei was likely to see choppy trade as a result, with
so-called defensive shares being bought and exporters sold after
the dollar sank below 90 yen on Friday. [USD/]

U.S. stocks shrugged off the data to end Friday's session
slightly higher. [.N]

"The jobs data basically wasn't that good, but one thing the
figures did do is raise expectations that low interest rates will
remain in effect for a while, which is good for stocks," said
Yutaka Miura, a senior technical analyst at Mizuho Securities.

"Certainly the number of jobs being lost has fallen, but it's
hard to see this as much of a good thing, and my impression is
that people taking this view are stretching things a bit. The
market is going to waver, trying to make up its mind."

The dollar was flat at 89.85 yen, with Miura and others
saying this was likely to weigh heavily on Tokyo shares. JPY=

High tech shares were also likely to fall after the PHLX
Semiconductor Index lost 0.4 percent.

The benchmark Nikkei .N225 is likely to move between 9,650
and 9,850, most likely starting a bit higher and then weaving in
and out of positive territory all day, market players said. It
closed at 9,789.35 on Friday.

In a sign the market may open higher, Nikkei futures traded
in Chicago 2NKc1 closed at 9,820, up 0.4 percent from the Osaka
close JNIc1.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1069.3 0.25% 2.670
USD/JPY JPY= 89.85 -0.13% -0.120
10-YR US TSY YLD US10YT=RR 3.5008 -- 0.000
SPOT GOLD XAU= 1096.6 0.03% 0.300
US CRUDE CLc1 77.43 0.00% -2.190
DOW JONES .DJI 10023.42 0.17% 17.46
-------------------------------------------------------------

> Wall
St rises 3 pct for week on Friday's slim gain [.N]
> Dollar, yen post gains as U.S. unemployment rises [USD/]
> Most prices rise on weak employment picture [US/]
> Gold surges to record after weak U.S. jobs data [GOL/]
> Oil falls nearly 3 pct on U.S. unemployment data [O/R]
STOCKS TO WATCH

-- Japan Airlines Corp (9205.T: Quote, Profile, Research)

The government plans to introduce legislation early next year
to forcibly cut pension payouts for JAL retirees and make the
cuts a condition for a state bailout of the troubled carrier, the
Nikkei business daily said. [ID:nT137536]

-- Sumitomo Trust and Banking Co Ltd (8403.T: Quote, Profile, Research), Chuo Mitsui
Trust Holdings Inc (8309.T: Quote, Profile, Research)

The two banks said on Friday they plan to merge, creating
Japan's largest trust bank with a scale to better compete in a
crowded asset management industry.

Sumitomo Trust, Japan's fifth-largest bank, and sixth-ranked
Chuo Mitsui said they planned to exchange shares on April 1,
2011, and form a holding company. The merger will likely be
completed by April 2012, with the bank to be called Sumitomo
Mitsui Trust Bank, the two firms said in a release. [ID:nT212956]

-- Nippon Telegraph and Telephone Corp (9432.T: Quote, Profile, Research) (NTT)

NTT will likely report an operating profit of about 630
billion yen ($7.01 billion) for the April-September first half, a
drop of 15 percent from the same period last year, the Nikkei
business daily said. [ID:nBNG441244]
-- Nissan Motor (7201.T: Quote, Profile, Research), other carmakers

Carlos Ghosn, who heads Nissan and France's Renault SA
(RENA.PA: Quote, Profile, Research) said on Sunday that the global car market has bottomed
and is on track for 60 million units in sales this year and next.
[ID:nHKG172260]
(Reporting by Elaine Lies; Editing by Michael Watson)