Nikkei seen rising, weaker yen to help exporters

TOKYO (Reuters) - Japan's Nikkei stock average is likely to rise on Thursday and may test a nine-month high, with exporters expected to benefit from a weaker yen, although the market will also take its cues from output data due before the open.

Honda Motor Co (7267.T) and Nissan Motor Co (7201.T) are likely to be in focus after they surprised markets on Tuesday by eking out small profits last quarter, helped by cost cuts.

Wall Street fell on worries that China might be ready to hit the brakes on lending, a move that could curb demand and hinder a global economic recovery, with commodity prices and shares in the energy and raw materials sectors hit hard.

A steep drop in U.S. durable goods orders also fueled the fall in stocks.

But Tokyo market analysts said these factors had been used as excuses to take profits on U.S. stocks after recent sharp rises.

"There's a little concern about possible overheating in the Nikkei, but futures in Chicago rose and the yen's a bit weaker, which should help," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

"But rises will be limited as investors shift to the sidelines as the end of the month nears."

Analysts polled by Reuters predict a rise of 2.4 percent in industrial output for June, following a 5.7 percent rise in May.

Investors are also likely to want to wait and see the results of earnings for key Japanese companies as the earnings season peaks on Thursday and Friday. Among firms due to announce later on Thursday are Sony Corp (6758.T) and Fujitsu Ltd (6702.T).