* Nikkei up on short-covering, buoyed by Wall St gains
* But 10,000 resistance seen strong, next target 10,200
* Techs up after gains by U.S. peers
By Elaine Lies
TOKYO, Nov 10 (Reuters) - Japan's Nikkei average rose 1.3
percent on Tuesday, buoyed by Wall Street's gains as interest in
risk-taking rose, with Mitsubishi Corp <8058.T> and other trading
firms up reflecting climbs in oil, gold and other commodities
prices.
Tokyo Electron <8035.T> and other chip-related shares climbed
following gains by their U.S. peers, after the Dow rose to a
13-month high and other Wall Street indexes gained after the
Group of 20 pledged to keep aid flowing to the world economy,
encouraging investor appetite for risk.
But analysts said long-term uncertainty was likely to keep a
lid on gains in Japan.
"Things are definitely getting brighter for the short term,
but over the longer term there's quite a lot of uncertainty
that's preventing rises in Japanese stocks," said Hiroichi Nishi,
general manager at the equity division of Nikko Cordial
Securities.
"Will there be more government bond issuance? Will the yen
continue to rise? And what sort of policies can we expect from
the government?"
The benchmark Nikkei <> gained 128.68 points to 9,937.67
by midafternoon. The broader Topix <>, which is not as
heavily tech-centred, rose 0.8 percent to 878.00.
Analysts said the Nikkei faces resistance around 10,000, just
about where the 25-day moving average comes in, but if it gains
upward momentum it could quickly punch through that level.
The next key technical level is 10,200, which is where the
Nikkei's 75-day moving average comes in, said Kenichi Hirano at
Tachibana Securities.
As shown by the Wall Street gains, risk appetite was fed by
the G20's weekend pledge to keep emergency measures in place
until recovery was assured, raising expectations for prolonged
low interest rates.
RISK-TAKING, BUT NOT JAPAN
"The market became more confident that the current ultra low
interest rate policy will continue after the G20 meeting, giving
investors more chance to take risks," said Shoji Yoshigoe, deputy
general manager and senior investment strategist at Mitsubishi
UFJ Securities.
But appetite to invest in Japanese stocks could be limited,
while investors may increase their weighting in Hong Kong or
Indian shares, he added.
Chip-related shares climbed after gains in their U.S. peers
sent the PHLX semiconductor index <.SOXX> up 3.2 percent.
Chip tester maker Advantest <6857.T> rose 3 percent to 2,040
yen and Tokyo Electron <8035.T> climbed 2.9 percent to 5,000 yen.
Nikon <7731.T>, which makes steppers, machines used to produce
semiconductor chips, rose 1.7 percent to 1,701 yen.
Trading houses advanced after gains in a broad range of
commodities on Monday that saw oil rise more than 2 percent on
supply disruption and gold hit a record high of $1,110.85 an
ounce. Other metals also gained.
Mitsubishi Corp <8058.T>, Japan's largest trading house, rose
1.1 percent to 2,010 yen and Mitsui & Co <8031.T> gained 2.1
percent to 1,193 yen. Itochu Corp <8001.T> rose 4.5 percent to
607 yen.
Toshiba Corp <6502.T> rose 1.2 percent to 522 yen, having
pared earlier gains, after it made a solo bid for French nuclear
reactor builder Areva's <CEPFi.PA> transmission and distribution
(T&D) business. []
Banks rose after comments from Japan's banking minister
suggesting Japan might not strictly enforce capital requirements
for banks.
Mitsubishi UFJ Financial Group <8306.T> rose 3.5 percent to
507 yen and No. 3 bank Sumitomo Mitsui Financial Group <8316.T>
rose 3.9 percent to 3,180 yen.
(Additional reporting by Chikafumi Hodo; Editing by Chris
Gallagher)
