(Adds stocks and comments)
By Taiga Uranaka
TOKYO, Jan 17 (Reuters) - Japan's benchmark Nikkei average
rose for the first time in five sessions on Thursday, with
exporters such as Honda Motor Co Ltd <7267.T> gaining after the
dollar recovered ground against the yen.
But the day's upswing is largely seen as a technical rebound,
and the market may lose its gains depending on currency moves.
"It's still fragile. We need more time to see the market on a
firm recovery path," said Zenshiro Mizuno, senior managing
director at Marusan Securities.
Honda Motor gained 3.2 percent to 3,200 yen and Toyota Motor
Corp <7203.T> rose 1.9 percent to 5,410 yen
Industrial robot maker Fanuc Ltd <6954.T>, the previous
session's biggest drag on the market, became the second-biggest
contributor to the Nikkei, gaining 5.2 percent to 8,730 yen.
Exporters had been among the hardest hit during the recent
sell-off amid growing fears of a U.S. recession and due to the
yen's sharp gains against the dollar.
The dollar, which hit a 2-1/2-year low of 105.92 yen <JPY=>
on Wednesday, regained some ground as speculators trimmed short
positions.
It was around 107.00 yen by midday on Thursday, with a dip
below that level earlier leading some market participants to
suggest exporters' shares may lose gains later in the day.
"The market may go down in the afternoon session if the yen
advances against the dollar," Takahiko Murai, general manager of
equities at Nozomi Securities.
The Nikkei <> ended the morning up 1.1 percent at
13,656.95 and the broader TOPIX index <> was up 0.9 percent
at 1,314.50.
Technical charts suggested a rebound after the sell-off. Even
after the morning bounce, the Nikkei's 14-day relative strength
index still stood at about 21, well below the 30 "oversold" line,
a fall below which usually indicates the market may be due for a
near-term rebound.
Trade was active, with 1.18 billion shares changing hands
compared to last week's morning average of 980 million.
Advancing shares outnumbered decliners nearly three to one.
DEFENSIVE SOLD
Defensive stocks such as drugmakers, which had been bought
during the sell-off, were sold as investors picked up exporters.
Takeda Pharmaceutical Co Ltd <4502.T> fell 1.5 percent to
6,540 yen and rival Eisai Co Ltd <4523.T> shed 2.2 percent to
4,490 yen. Astellas Pharma Inc <4503.T> lost 2.1 percent to 4,700
yen.
Property shares gained after UBS said they had "significant
upside" and could rebound sharply if the credit crunch eases.
Mitsubishi Estate Co Ltd <8802.T>, Japan's second-ranked real
estate company, rose 5.9 percent to 2,425 yen.
No. 1 Mitsui Fudosan <8801.T> gained 5.2 percent to 2,110 yen
and No. 3 Sumitomo Realty & Development <8830.T> climbed 4.9
percent to 2,260 yen.
Mitsubishi Corp <8058.T> rose 3 percent to 2,580 yen after
Goldman Sachs added the company to its "conviction buy" list,
citing price stability for the trading company's resource
portfolios, such as coal and iron, and strong growth for its
machinery business in emerging economies.
