TOKYO, Aug 10 (Reuters) - Japan's Nikkei stock average may test a 10-month high on Monday, with good U.S. jobs data underpinning hopes for a recovery in the world's largest economy and boosting exporters such as Sony Corp.
Investors may focus on Mitsubishi Chemical Holdings Corp and Mitsubishi Rayon Co Ltd after the Nikkei financial daily said Mitsubishi Chemical planned to acquire acrylic fibre maker Mitsubishi Rayon through a tender offer.
The U.S. unemployment rate fell in July for the first time in 15 months as employers cut fewer than expected jobs, sending U.S. stocks higher on Friday and pushing the Standard & Poor's 500 to a 10-month high.
The dollar jumped more than 2 percent against the yen to its best level since June, and fetched around 97.56 yen in early trade.
"There's a lot of positive factors out there, and the market will respond well to these," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
"In particular, the yen's weakening has now taken it below the level that many manufacturers have set as their exchange rate, boosting hopes that earnings will be even better."
Investors fret about a stronger yen because it eats into exporter earnings when repatriated.
Analysts said the benchmark Nikkei is set to move between 10,450 and 10,650. It marked a 10-month closing high of 10,412.09 on Friday and last Tuesday hit a 10-month intraday high of 10,479,19.
Once the Nikkei breaks the psychologically significant 10,500 level, the next target will be 10,800 -- a level it last saw in October and a 50 percent Fibonacci retracement from its June 2008 high and last October's 26-year low just under 7,000.
In a sign that stocks are set to open higher, Nikkei futures traded in Chicago closed at 10,635 points, up 2.1 percent from the Osaka close of 10,420. STOCKS TO WATCH
-- Toyota Motor Corp
Toyota plans to raise its global output target for the year to March 2010 by 3 percent to 6.5 million units, the Yomiuri newspaper said, in the latest sign of nascent recovery in auto demand.
-- Bridgestone
Top Japanese tyre maker Bridgestone tumbled to an operating loss in the second quarter, hit by the economic slump and a stronger yen, but it raised its full-year outlook again after a surprise upgrade in June.
-- Usen Corp
Usen, a media content provider, is in talks with MBK Partners and other funds on boosting its capital, two people with direct knowledge of the deal said.
-- NTT DoCoMo Inc
Japan's top wireless operator NTT DoCoMo is interested in buying Luxembourg-based telecom operator Millicom's Cambodian network to boost its presence in Southeast Asia, an executive said.
-- Rohm
Japanese specialty chip maker Rohm revised up its guidance for the six months to September to a net loss of 2.5 billion yen from a previous forecast for a loss of 7.5 billion yen on cost cuts and better-than-expected demand for flat TVs. (Reporting by Elaine Lies; Editing by Hugh Lawson)