*Nikkei up 3.9 pct, on track for third day of rises
*Market awaits possible BOJ rate-cut move, buoyed by hopes
*Exporters climb on bargain-hunting, yen retreat
*Commodities firms surge as metals, oil up
(Adds stocks, details)
By Elaine Lies
TOKYO, Oct 30 (Reuters) - Japan's Nikkei average climbed 3.9
percent on Thursday as bargain-hunters buoyed by the yen's
retreat snapped up exporters such as Honda Motor Co <7267.T>,
with hopes of a Bank of Japan rate cut offering more support.
Mitsubishi Corp <8058.T> and other trading houses rose on a
combination of bargain-hunting and a surge in metals prices that
also boosted commodities-linked firms, with even beaten-down
shippers riding the wave of bargain-hunting higher.
The U.S. Federal Reserve on Wednesday cut U.S. interest rates
by a half-percentage point to try to stave off a prolonged
recession and left the door open to further reductions if needed
[], encouraging the market as it waits for the
results of a Bank of Japan meeting on Friday.
"Expectations of a BOJ rate cut are helping to boost the
market today. Though some people are saying it won't have much of
an impact, it's certainly better than nothing," said Nagayuki
Yamagishi, a strategist at Mitsubishi UFJ Securities.
"But the biggest factor is that blue-chip exporters have
become so cheap that bargain hunters are now emerging to buy."
The yen fell broadly <JPY=> <EURJPY=R>. By midday the dollar
was fetching around 98.38 yen, well above the 13-year trough of
90.87 yen hit on trading platform EBS late last week.
In moderately active trade, the benchmark Nikkei <>
gained 318.87 points to 8,530.77, on track for a third day of
rises that have seen it gain nearly 1,400 points so far.
The broader Topix <> was up 3.1 percent at 855.83.
Some in the market said prospects of a Bank of Japan rate cut
had combined with an economic package due to be announced by the
government later today to give investors fresh hope.
"These things appear to be helping spread reassurance among
investors bit by bit," said Katsuhiko Kodama, senior strategist
at Toyo Securities.
But others remained sceptical.
"There's no question that this kind of step needs to be done,
not only in Japan but around the world, but there are strong
doubts about how effective Japan's package will be," said
Yamagishi at Mitsubishi UFJ Securities.
TRADERS, EXPORTERS, SHIPS
Trading firms surged after base metals climbed on Wednesday,
with a rise in crude oil prices also providing upward impetus.
Mitsui & Co <8031.T> climbed 11.4 percent to 930 yen and
Marubeni <8002.T> climbed 11 percent to 374 yen. Mitsubishi rose
10.7 percent to 1,693 yen.
Pacific Metals Co Ltd <5541.T>, a manufacturer of ferronickel
-- used in stainless steel -- jumped 14.8 percent to 418 yen.
Honda gained 6.4 percent to 2,595 yen and Kyocera Corp
<6971.T> rose 9.8 percent to 5,960 yen.
Toyota Motor Corp <7203.T> climbed 5.4 percent to 3,690 yen
after saying on Thursday that U.S. automaker General Motors Corp
<GM.N> has not asked Toyota for help in turning around its
business, denying a Kyodo news agency report. []
Citing sources familiar with the matter, Kyodo had reported
overnight that cash-hungry GM had asked its rival for help.
Even shippers, battered until recently, saw benefits from the
wave of buying, with the sea transport subindex <.ISHIP.T> rising
8.2 percent to become the second-biggest gainer among the
subindexes.
Kawasaki Kisen <9107.T> surged 11.6 percent to 394 yen while
Mitsui O.S.K. Lines <9104.T> rose 8.7 percent to 485 yen. Nippon
Yusen <9101.T>, Japan's largest shipper, gained 6.6 percent to
483 yen.
Trade was moderate on the Tokyo exchange's first section,
with 1.1 billion shares changing hands, compared with last week's
morning average of 986.5 million.
Advancing stocks outpaced declining ones by nearly 3 to 1.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
