TOKYO (Reuters) - Japan's Nikkei average is likely to trade in a narrow range on Tuesday as China-related companies are caught up in mounting tension between China and Japan's over a territorial dispute, although weaker yen will offer support to the market.
The Nikkei .N225 was likely to trade between 9,050 and 9,250, strategists said, after rallying 1.8 percent on Friday to 9,159.39, its highest closing level in three weeks.
The broader Topix .TOPX index climbed 1.7 percent to 756.88 on Friday. Monday was a public holiday in Japan.
"The yen depreciation will be a positive factor. On the other hand, the bad news is China where demonstrators attacked Japanese companies ... Panasonic factory and a lot of department stores," said Takashi Hiroki, chief strategist at Monex Inc.
The yen was quoted at 78.695 on Tuesday after falling to a one-week low of 78.93 on Monday, well off a seven-month high of 77.13 hit on Thursday after the U.S. Federal Reserve announced the launch of another round of stimulus.
Nikkei futures in Chicago closed at 9,145 on Monday, up 0.7 percent from the Osaka close of 9,080 on Friday.
Apple Inc (AAPL.O) component suppliers could also be in focus after the U.S. company booked orders for over two million iPhone 5 models in the first 24 hours, reflecting a higher-than-expected demand for its new smartphone and setting it up for a strong holiday quarter.
The Nikkei is up 8.3 percent so far this year.
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Some major Japanese brandname firms announced factory shutdowns in China on Monday and urged expatriates to stay indoors to avoid what could be more angry protests over a territorial dispute between the two countries.
--AEON CO LTD (8267.T)
Shares of Japanese-related retailers came under pressure on Monday on worries about the impact of anti-Japan protests on their business, with department store operator Aeon Stores (Hong Kong) Co Ltd (0984.HK), controlled by Aeon Co Ltd, falling to its lowest in seven months.
Reporting by Dominic Lau; Editing by Eric Meijer