TOKYO, Oct 11 (Reuters) - Japan's Nikkei average is set tofall for a third straight session on Thursday on mountingconcerns that the upcoming quarterly corporate earnings will beweak after a tame start to the U.S. results season.
SmartEstimates from Thomson Reuters StarMine expects anaverage negative earnings surprise from Nikkei companies of 1.3percent for July-September quarterly results, worsening slightlyfrom an earlier estimate of a 1.2 percent negative surprise.
was likely to trade between 8,500 and8,600, strategists said, while Nikkei futures in Chicago
closed at 8,550 on Wednesday, down 0.5 percent from theOsaka
close of 8,590.
"Disappointingly, U.S. cyclicals, such as Caterpillar
, Chevronand Alcoa
fell sharplyyesterday. So even through there was a ray of hope after someJapanese semi-conductor shares and other manufacturers recoveredfrom lows yesterday, it will be a difficult day," said EijiKinouchi, chief technical analyst at Daiwa Securities.
The S&P 500 fell for a fourth day on Wednesday after Chevronsaid third-quarter profits would be "substantially lower" thanthe previous quarter and Alcoa posted a quarterly loss and cutits outlook for global aluminum demand.
On Wednesday, the Nikkei shed 2 percent to 8,596.23, hitting
a two-month closing low, while the broader Topix
dropped 1.5 percent to 716.84.
The Bank of Japan bought 31.4 billion yen ($401 million)worth of exchange-traded funds on Wednesday to support themarket.
The benchmark Nikkei is up 1.7 percent so far this year,trailing a 13.9 percent rise in the S&P 500
and a 9.9percent gain in the pan-European STOXX Europe 600
> Blue chips Chevron, Alcoa lead Wall Street's sell-off
> Euro falls vs dollar; Spain, Greece in focus
> Treasuries gain in thin volume on global growth fears
> Gold ends flat as stimulus fades, euro zone eyed
> Oil falls as economic worries, stock market pressure
STOCKS TO WATCH--MITSUBISHI MOTORS CORP
Mitsubishi Motors said on Wednesday that one or moreshareholders had converted 5,300 preferred shares into 74.6million new common shares at 71 yen per share, worth 5.3 billionyen ($67.8 million), since the start of October.
Japan's new tax on carbon emissions will cost utilitiesabout 80 billion yen ($1 billion) annually from 2016, adding totheir already high costs of running power stations after theFukushima crisis shut most of the country's nuclear plants, agovernment backed think-tank said.
($1 = 78.3200 Japanese yen)
(Reporting by Dominic Lau and Hideyuki Sano; Editing by RichardPullin)
Keywords: MARKETS JAPAN STOCKS/