Japan's Nikkei average is expected to fall on Thursday, led by exporters on a firmer yen and after U.S. stocks sank, a day after Barack Obama's victory in the presidential election, on a fresh batch of dismal economic data.

In Japan's earnings season, Toyota Motor Corp is among major companies to report results later in the day."The market here will be under pressure as U.S. investors' attention shifted to the economic reality after stocks rose on abstract hopes related to the presidential election," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.

"But we will probably continue to see buying from such entities as index funds and pension funds when the market tests low levels."Nikkei futures traded in Chicago closed at 9,155 on Wednesday, 365 points below their close in Osaka, pointing to a lower opening.

Market participants expect the benchmark Nikkei average to trade between 8,900 and 9,300 on Thursday. It gained 4.5 percent the previous day to 9,521.24, its highest close since Oct. 15.

Grim economic news in the United States included a report that showed deep cuts in employment by private employers in October and data that showed the vast service sector contracted sharply last month as the worst financial crisis in 80 years roiled the world's largest economy.