TOKYO, July 8 (Reuters) - Japan's Nikkei average is likely to fall for a sixth straight day on Wednesday, with exporters seen hurt by a stronger yen and after talk of a second U.S. government stimulus plan sent U.S. stocks to their lowest level in 10 weeks.
Komatsu and other machinery makers will be in focus, with machinery orders, a leading indicator of capital expenditure, set to be released before the start of trade.
The data will likely do little to dispel the view that corporate spending will weaken in coming months as factory output is at low levels.
But market players said despite an expected fall in the market on Wednesday, that should be still part of a correction after a recent bullish run-up, in which the benchmark Nikkei has recovered about 40 percent from its March lows.
"Calls for more stimulus steps are emerging in the U.S. as the ones it has already launched haven't led to an improvement in consumption," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"But there's still a possibility that those economic steps which were quite large will gradually start to have an impact. Talk like this is also a sign that the government is determined not to let the economy deteriorate further."
An adviser to President Barack Obama said the United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue package launched in February.
That heightened fears that the economy is not yet on the path to recovery and that the corporate earnings season starting this week will be weak, sending the Dow Jones industrial average to its lowest close since April 28.
The yen and dollar rose broadly on Tuesday also on uncertainty about the global economic outlook. The dollar was down 0.2 percent at 94.75 yen in early Asia trade.
Nikkei futures traded in Chicago fell 0.5 percent from their Osaka close, pointing to a lower start.
Market players expect the Nikkei to trade between 9,450 and 9,700 on Wednesday. It fell 0.3 percent the previous day to end at 9,647.79. > Wall St hits 10-week low amid talk of new stimulus > Yen, dollar rise as taste for risk fades > Weak stocks, decent auction ignite bond rally > Gold ends up on bargain hunting despite weak oil > Oil falls as recovery fears spur risk aversion STOCKS TO WATCH
-- Mitsui & Co
Mitsui & Co has obtained exclusive sales rights to lithium from a mine in Quebec owned by Canada Lithium Corp, eyeing growing demand for lithium due to growing sales of hybrid and electric cars, the Nikkei business daily reported on Wednesday.
Mitsui plans to start importing around 2,000 tonnes of lithium a year from 2013 for sale to Japanese and South Korean makers of lithium-ion batteries, the Nikkei said.
-- GS Yuasa Corp
GS Yuasa has developed a three-wheeled electric motorbike it plans to begin selling next spring as part of its efforts to increase name recognition for its lithium ion batteries, the Nikkei business daily reported on Wednesday.
-- Murata Manufacturing Co, Kyocera
Japanese electronics parts makers are ramping up production, with a Nikkei business daily's survey showing 64 percent of major players anticipating business improvement in the July-September quarter, the paper said.
That is buoyed by recovering demand for digital consumer electronics in emerging economies, the paper said.
-- Aeon Co Ltd,
Japan's second-largest retailer, Aeon, on Tuesday posted a 62 percent drop in quarterly profit as a slide in consumer spending hit its supermarkets and its U.S. women's clothing unit Talbots.
-- Astellas Pharma Inc
Astellas, Japan's second-largest drugmaker, said on Tuesday it has won approval to sell its key transplant drug Prograf in Japan as a treatment for severe ulcerative colitis, a form of intestinal inflammation. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)