Japan stocks set to rise on Wall St, softer yen

TOKYO, July 9 (Reuters) - Japan's Nikkei average is expected
to rebound on Wednesday from a three-month closing low hit the
previous day, with investors encouraged by gains on Wall Street
sending exporters such as Canon Inc (7751.T: Quote, Profile, Research) higher.

Seven & I Holdings Co Ltd (3382.T: Quote, Profile, Research) and Aeon Co (8267.T: Quote, Profile, Research) may be
in focus after Japan's top two retailers reported sluggish
quarterly profits on Tuesday as consumers cut back spending amid
rising prices of gasoline and food, but they stuck with their
full-year growth targets. [ID:nT203194]

"The Nikkei is likely to rebound for now, helped by a jump in
overseas markets, a slightly softer yen and after it broke below
the 13,000 level yesterday," said Yutaka Miura, deputy manager of
the equity information department at Shinko Securities.

"But shares are unlikely to keep gaining as investors lack
domestic factors to keep buying Japanese shares and the level of
share prices here is still higher than in Europe and the United
States."

Nikkei futures 2NKc1 closed at 13,320 in Chicago trading,
320 points above their Osaka close JNIc1, pointing to a higher
opening.

The benchmark Nikkei .N225 will likely trade between 13,100
and 13,400, market participants said. It fell 2.5 percent on
Tuesday to end at 13,033.10, its lowest close since April 15.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1273.7 1.71% 21.390
USD/JPY <JPY=> 107.39 -0.05% -0.050
10-YR US TSY YLD <US10YT=RR> 3.888 -- 0.000
SPOT GOLD <XAU=> 917.2 -0.25% -2.300
US CRUDE CLc1 135.92 -0.09% -0.120
DOW JONES .DJI 11384.21 1.36% 152.25
-------------------------------------------------------------
> Market rises on banks, lower oil; Alcoa up late [.N]
> Bernanke comments, oil price slide boost dollar [USD/]
> Long bonds gain as oil drop eases inflation fears [US/]
> Gold ends with slight loss despite oil slump [GOL/]
> Oil slumps on easing storm worry, dollar [O/R]
STOCKS TO WATCH

-- Seven & I Holdings Co Ltd (3382.T: Quote, Profile, Research), Aeon Co (8267.T: Quote, Profile, Research)

Japan's top two retailers reported sluggish quarterly profits
on Tuesday as consumers cut back spending amid rising prices of
gasoline and food, but they stuck with their full-year growth
targets. [ID:nT203194]

-- Sapporo Holdings (2501.T: Quote, Profile, Research)

U.S. hedge fund Steel Partners, which is seeking a one-third
stake in Japan's No.3 beer maker Sapporo, said on Tuesday it has
recommended the Japanese brewer hire an investment banker to
explore the sale of the company or parts of its business.
[ID:nT47124]

-- Promise Co Ltd (8574.T: Quote, Profile, Research)

Japanese consumer finance firm Promise said it plans to issue
up to 60 billion yen ($558.5 million) of convertible bonds to
help it repay short-term debt following the acquisition of a
rival last year. [ID:nT266308]

-- Oji Paper Co (3861.T: Quote, Profile, Research)

Oji Paper's recurring profit likely fell 10 percent from a
year earlier to 7.5 billion yen in the April-June quarter due to
high material and fuel costs, the Nikkei business daily reported
on Wednesday.

Its sales are expected to have totalled around 330 billion
yen in the three months, up 4 percent from a year earlier thanks
to a price rise for printing paper, the Nikkei said.
($1=107.42 Yen)
(Reporting by Aiko Hayashi; Editing by Michael Watson)