Nikkei set to fall after more U.S. firms warn on sales

TOKYO, July 11 (Reuters) - Japan's Nikkei share average is
expected to decline for a fifth straight session, with more
revenue warnings from U.S. companies, including engine maker
Cummins Inc, seen weighing on sentiment already hit by
weak global economic data.

Market players said the Nikkei was likely to trade between
8,750 to 8,900 on Wednesday after Nikkei futures in Chicago
<0#NIY:> closed at 8,835, down 0.3 percent from the Osaka close
.

"It's now important to watch to see if the Nikkei breaks its
25-day moving average at around 8,753 either today or tomorrow,"
said Toshiyuki Kanayama, senior market analyst at Monex Inc.

"That could lead us to back to the same pattern as in early
June," he added, referring to the six-month low the benchmark
index struck on June 4 after falling 19 percent from its March
27 high.

The Nikkei ended 0.4 percent lower on Tuesday at 8,857.73,
hurt by a smaller year-on-year increase in Chinese imports in
June. The benchmark index now rests on a key trend-line that
connects the intraday lows of June 4 and June 26-27 that some
see as a sign that its one-month rally has finished.

The Bank of Japan will hold a two-day policy meeting
beginning later on Wednesday. Although some market players are
hopeful that the central bank may introduce further easing
steps, an increasing number expect it to stand pat after it
released an unexpectedly positive economic review.

Kanayama said the market will continue to focus on defensive
stocks amid uncertainty about the euro zone crisis and a
slowdown in the United States, China and emerging nations.
> More profit warnings hit Wall Street
> Euro slides to 2-year low vs dollar, $1.20 in focus
> Prices inch up as safety bid overcomes supply
> Gold down 1.3 pct on weak commods, market jitters
> Oil falls as Norway strike ends, China's imports slip

STOCKS TO WATCH

-NTT DOCOMO

NTT DoCoMo Inc said it has joined hands with six foreign
telecommunications service providers to make their
machine-to-machine data communications compatible, enabling
users to utilise the service in more countries, the Nikkei
business daily reported.
($1 = 79.4700 Japanese yen)

(Reporting by Sophie Knight; Editing by Edwina Gibbs)