* Exporters rise on short-covering; U.S., Japan data help
* Financials fall after minister's comments on lending
* Trade cautious on policy uncertainty, before 5-day holiday
By Aiko Hayashi
TOKYO, Sept 17 (Reuters) - Tokyo's Nikkei average rose 1.2
percent on Thursday, lifted by exporters such as Sony Corp
<6758.T> after industrial output data helped buoy U.S. stocks to
fresh 2009 highs.
A government survey showing that big manufacturers had turned
optimistic in the three months to September as well as a mostly
smooth start for Japan's new government were also lending support
to market sentiment, market players said.
"We have had bits and bobs of positive news and not much in
the way of negative news except for maybe Kamei's comment," said
Soichiro Monji, chief strategist at Daiwa SB Investments.
Shizuka Kamei, the new minister for banking and market
regulation and seen as an opponent of market-friendly reforms,
has sent bank shares lower with his comments on lending.
[]
Kamei said he would like to introduce a moratorium on some
loan repayments to help small and midsize businesses and
individuals struggling from the economic downturn.
Mitsubishi UFJ Financial Group <8306.T>, Japan's biggest
lender, fell nearly 2 percent in the morning session.
In light trade, the benchmark Nikkei <> gained 120.55
points to 10,391.32, after adding 0.5 percent the previous day.
The broader Topix <> advanced 0.8 percent to 938.52.
The advance came despite comments from new Finance Minister
Hirohisa Fujii who said that recent currency moves were not rapid
and that a strong yen had merits for the economy, pushing the yen
higher on Wednesday to near a seven-month high of 90.18 yen hit
earlier this week.
Investors fret about a stronger yen as it curbs exporters'
profits when they are repatriated.
But further gains may be difficult as investors wait and see
how the government's new policies pan out, analysts said.
"Some domestic investors appear to be reducing their stocks
allocations not so much due to fundamental reasons but because of
sentiment or supply and demand reasons. That is also putting a
lid on further gains," Monji said.
Trade was also cautious ahead of a five-day holiday period
from Sept. 19-23 in Japan.
U.S. stocks rose for a third day on Wednesday, hitting fresh
2009 highs in a broad-based rally after data showing U.S.
industrial output advanced for a second consecutive month in
August. []
In addition to the government's survey which showed that big
Japanese manufacturers turned optimistic about business
conditions, a Reuters Tankan survey also showed improvement in
manufacturers' sentiment, with an index measuring their mood
climbing to a one-year high. [] []
EXPORTERS UP, FINANCIALS WEIGH
Exporters climbed on short-covering and were also helped by a
halt in the yen's advance against dollar <JPY=>.
Sony climbed 2.6 percent to 2,540 yen.
Mitsubishi UFJ Securities raised its rating on the
electronics maker to "1" from "3" while setting a 3,200 yen
target price. It cited expectations for an earnings rebound in
the next business year to March 2011 thanks to a return to
profitability in its LCD TV, games and mobile phone operations.
Toyota Motor Corp <7203.T> added 1.4 percent to 3,760 yen,
while industrial robot maker Fanuc Ltd <6954.T> gained 2 percent
to 7,840 yen and chip-tester maker Advantest Corp <6857.T> jumped
4.6 percent to 2,395 yen.
JFE Holdings <5411.T> climbed to extend the previous day's
gains after the Nikkei business daily said a plant of its JFE
Steel unit in Kawasaki, near Tokyo, could be restarted as early
as next month, hinting at a recovery in demand.
JFE Holdings shot up 5.3 percent to 3,400 yen, fellow
steelmaker Nippon Steel <5401.T> jumped 4.4 percent to 354 yen
and Kobe Steel <5406.T> gained 2.5 percent to 166 yen.
But financials shares fell, weighed down after Kamei's
comments about bank lending.
Mitsubishi UFJ Financial Group slipped 1.9 percent to 516
yen, while No. 3 bank Sumitomo Mitsui Financial Group <8316.T>
shed 3.9 percent to 3,420 yen. Mizuho Financial Group <8411.T>
dipped 0.5 percent to 194 yen.
Kao <4452.T>, Japan's largest maker of toiletries, fell 1.8
percent to 2,215 yen after the company said it would halt
shipments in Japan of its flagship Enova cooking oil products,
because they contain fatty acid glycidyl esters. Glyceride ester
is said to be a possible cause of cancer.
Some 935 million shares changed hands on the Tokyo exchange's
first section, below last week's morning average of 1.1 billion.
Advancing stocks outnumbered declining ones by more than 2 to
1.
(Editing by Chris Gallagher)
