Nikkei seen under pressure from yen, earnings eyed

                                
 (Adds Toyota ADR, volume)
                                
 TOKYO, Jan 29 (Reuters) - Japan's Nikkei average is likely to
fall on Friday, pressured by a slightly stronger yen, while
investor caution ahead of a slew of earnings reports is seen
keeping trading in check.
                                
 Toyota Motor Corp <7203.T> will be in focus after the world's
top automaker's problems intensified as it announced it would
extend to Europe and China a recall of millions of vehicles due
to faulty accelerator pedals and floor mats. [ID:nN27231388]
                                
 Toyota's shares traded in the United States <TM.N> slid 2.6
percent in active trade on Thursday, a day after their recorded
their highest volume since October 2008. Toyota fell a further 4
percent in Tokyo trading on Thursday, taking losses since last
week to more than 15 percent.
                                
 Nintendo <7974.OS> may also draw attention after the games
maker showed greater than expected resilience in its battle for
market share last quarter thanks in part to a 20 percent price
cut on its Wii product that sliced into profits. [ID:nTOE60Q0AG]
                                
 "The Nikkei will likely fall to the 10,300 level after U.S.
stocks slipped and as the dollar/yen is moving below 90 yen,"
said Kazuhiro Takahashi, general manager at Daiwa Securities
Capital Markets.
                                
 "Earnings reports then will likely drive the direction of the
market. Still, if buying by foreigners continue and buying
related to end-month window dressing emerges, the market could
recoup some ground before the close."
                                
 Nikkei futures in Chicago <2NKc1> closed at 10,320, down 1
percent from the Osaka close <2JNIc1>, pointing to a lower start.
                                
 The benchmark Nikkei <.N225> is likely to move between 10,300
and 10,500 on Friday, market players said. It rose 1.6 percent
the previous day to 10,414.29, ending a four-day losing streak.
                                
 U.S. stocks dropped on Thursday partly as poor outlooks from
Motorola <MOT.N> and Qualcomm <QCOM.O> dented optimism in the
technology sector. [.N]
                                
 But Japan's high-tech sector, particularly chip-related firms
reported bullish earnings on Thursday, with chip maker Elpida
Memory Inc <6665.T> reporting its first net profit in nine
quarters on a surge in DRAM prices. [ID:nTOE60R079]
[ID:nTOE60R07I]
                                
 The reporting season continues, with companies set to report
later in the day including Mizuho Financial Group <8411.T>,
Daiichi Sankyo <4568.T>, Mitsubishi Corp <8058.T>, JFE Holdings
Inc <5411.T> and Toshiba Corp <6501.T>.
----------------------MARKET SNAPSHOT @ 2310 GMT ------------
                                
                 INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500             <.SPX>       1084.53     -1.18%   -12.970
USD/JPY             <JPY=>       89.84       -0.03%    -0.030
10-YR US TSY YLD    <US10YT=RR>  3.6421          --     0.000
SPOT GOLD           <XAU=>       1084.4      -0.22%    -2.350
US CRUDE            <CLc1>       73.78        0.19%     0.140
DOW JONES           <.DJI>       10120.46    -1.13%   -115.70
-------------------------------------------------------------
> Wall St slides on tech results, global worry           [.N]
> Dollar hits 6-1/2-month high vs euro on Greece woes  [USD/]
> Safety bid boosts short-dated US debt                 [US/]
> Gold drops on dollar rise, liquidation worry         [GOL/]
> Oil falls for third day on weak U.S. fuel demand      [O/R]
                                
 STOCKS TO WATCH
                                
  -- GS Yuasa Corp <6674.T>
                                
 U.S. solar start-up Suniva Inc said on Thursday it would
partner with the U.S. unit of Japanese battery company GS Yuasa
Corp to develop solar-powered energy storage systems.
[ID:nN28247295]
                                
 -- Elpida Memory Inc <6665.T>, Advantest Corp <6857.T>
                                
 Elpida sprang back to a net profit of 21.1 billion yen in
October-December, its first in 9 quarters, from a loss of 72.3
billion yen in the same period the previous year, thanks to a
boost in demand for advanced DDR3-type chips and a rise in
corporate demand. [ID:nTOE60R07I]
                                
 Advantest, which supplies chip testers to chip makers such as
Intel <INTC.O> and Samsung, said it now expects a annual net loss
of 13.5 billion yen, missing a market consensus for a loss of 7.2
billion yen by 16 analysts.
                                
 -- Komatsu Ltd <6301.T>
                                
 Construction machinery maker Komatsu booked a 60 percent fall
in third-quarter operating profit as sales remained far below
levels seen before the global downturn, and kept its forecast for
profit to halve this financial year. [ID:nTOE60R07A]
                                
 -- Promise <8574.T>
                                
 Struggling Japanese consumer lender Promise said tough times
are likely to continue for at least two years as it and its
rivals try to find ways to survive tougher lending rules.
[ID:nTOE60R088]
 (Reporting by Aiko Hayash; Editing by Joseph Radford)
 )