TOKYO, Feb 13 (Reuters) - Japan stocks are seen rising on
Wednesday, boosted by insurers such as Millea Holdings Inc
(8766.T: Quote, Profile, Research) after an offer of help to U.S. bond insurers, but gains
will be limited before key indicators later this week.

The pharamaceutical sector will be in focus after the Nikkei
business daily reported that Fujifilm Holdings (4901.T: Quote, Profile, Research) will
launch a bid of more than 100 billion yen ($932 million) for a
controlling stake in drug maker Toyama Chemical Co 4518.T.

The Dow Jones industrials .DJI and S&P 500 .SPX rose
after Warren Buffett offered to reinsure $800 billion in
municipal debt risk from the top three bond insurers, soothing
worries about fallout from the credit crisis, but Japanese
players were sceptical.

"This isn't the major problem debt but rather municipal
bonds, so I'm unsure about its long-term impact. Still,
financials are likely to rise on reassurance the offer brought,"
said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ
Securities.

CNBC reported that Ambac (ABK.N: Quote, Profile, Research) has rejected the offer,
raising further doubts about how much the market could rise.
Gains are expected to be limited mainly by profit-taking ahead of
indicators including Japanese October-December GDP on Thursday.

The Nikkei average .N225 is seen ranging from 13,000 to
13,200, although a brief dip below 13,000 is possible. It closed
at 13,021.96 on Tuesday.

In a further sign of how the market may move, Nikkei futures
traded in Chicago 2NKc1 finished at 13,235, up from 12,990 at
the Osaka close JNIc1.
----------------------MARKET SNAPSHOT @ 2257 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1348.86 0.73% 9.730
USD/JPY <JPY=> 107.3 -0.03% -0.030
10-YR US TSY YLD <US10YT=RR> 3.6617 -- 0.000
SPOT GOLD <XAU=> 907.4 0.15% 1.400
US CRUDE CLc1 92.78 0.00% -0.810
DOW JONES .DJI 12373.41 1.09% 133.40
-------------------------------------------------------------
> US STOCKS-Dow, S&P end higher on Buffet bond insurer offer [.N]
> Yen tumbles broadly on Buffett bond rescue plan [USD/]
> TREASURIES-Bonds ease as Buffett offer soothes worries [US/]
> Gold tumbles on demand slump in top consumer India [GOL/]
> Oil falls as Venezuela threat recedes [O/R]
STOCKS TO WATCH

-- Toshiba Corp (6502.T: Quote, Profile, Research)

Goldman Sachs has raised its rating on Toshiba to "buy" from
"hold", citing expectations that NAND flash memory prices will
bottom and for cost savings from a change in its high-definition
DVD strategy. [ID:nT306258]

-- Bridgestone Corp (5108.T: Quote, Profile, Research)

Bridgestone admitted on Tuesday that overseas subsidiaries
had attempted to pay bribes to help sell marine hoses, and said
it would pull out of the $140 million market. [ID:nT280900]

-- Sky Perfect JSAT Corp (9412.T: Quote, Profile, Research)

Sky Perfect JSAT is in final talks to acquire most shares in
Space Communications Corp from the Mitsubishi group for as much
as 30 billion yen, the Nikkei business daily reported on
Wednesday.

The deal would make Sky Perfect JSAT Japan's sole platform
operator for digital broadcasting via communications satellite,
the newspaper said.

-- Taisho Pharmaceutical Co Ltd (4535.T: Quote, Profile, Research), Biofermin
Pharmaceutical Co Ltd (4517.OS: Quote, Profile, Research)

Taisho Pharmaceutical said on Tuesday it will spend up to
27.3 billion yen to take a 62 percent stake in Biofermin
Pharmaceutical [ID:nT272450]

-- Millea Holdings Inc (8766.T: Quote, Profile, Research)

Millea Holdings and other insurers could rise after Warren
Buffet's offer to reinsure $800 billion in municipal debt risk
from the top three U.S. bond insurers, soothing worries about
further fallout from the credit crisis.

-- Nintendo Co Ltd (7974.OS: Quote, Profile, Research)

Nintendo sold 1.08 million units of its "Super Smash Bros.
Brawl" software in 11 days since its Jan. 31 launch in Japan,
reaching the 1 million mark faster than any other Wii game, a
game magazine publisher said. [ID:nT271655]

-- Fujitsu Ltd (6702.T: Quote, Profile, Research)

Fujitsu's struggling chip arm said on Tuesday it would aim
for an operating profit margin of 5 percent in the year starting
in April 2009 on sales of its chips used in camcorders, cars and
TVs. [ID:nTKU003022]

-- NEC Corp (6701.T: Quote, Profile, Research)

NEC said on Tuesday it plans to tie up with France's
Alcatel-Lucent (ALUA.PA: Quote, Profile, Research) in mobile and fixed-line networks.
[ID:nT306008]

-- Dentsu Inc (4324.T: Quote, Profile, Research)

Dentsu, Japan's largest advertising firm, said on Tuesday its
group operating profit fell 12.5 percent to 36.4 billion yen for
the nine months ended Dec. 31 as sales dropped 2.5 percent to
1.513 trillion yen.
(Reporting by Elaine Lies, Editing by Michael Watson)