Manchuria was a logical target for Japanese expansion because
Japan was running the South Manchurian railway at the time of the
incident. It was also within close range, and would make it easier
for the Japanese to get their resources onto the mainland. Another
good reason is that China at the time was in a state of civil war,
so after bombing the South Manchurian railway, they could easily
make it look like communist China's fault and go in looking like
they were helping the Chinese.