*Nikkei up after U.S. rescue plan for Fannie Mae, Freddie Mac
*Nisshinbo jumps on report of new fuel cell technology
*Caution remains ahead of U.S. financial earnings
(Adds comments and stocks)
TOKYO, July 14 (Reuters) - The Nikkei stock average rose 1.1
percent on Monday, led higher by bank stocks on investor relief
after the U.S. government unveiled emergency measures to help
troubled home financing providers.
Nisshinbo Industries Inc <3105.T> jumped more than 10 percent
after a newspaper reported the firm developed a technology to use
carbon instead of platinum as the electrode catalyst for fuel
cells [].
Japan's top lender Mitsubishi UFJ Financial Group <8306.T>
and other banks rose sharply after the U.S. Treasury and Federal
Reserve offered its emergency cash to Fannie Mae <FNM.N> and
Freddie Mac <FRE.N> and said it would buy shares in the mortgage
financing giants to bolster investor confidence. []
But strategists and fund managers said the move was likely to
be only a temporary boost for the market.
"It's a deja vu of Bear Sterns. The market's positive
reaction is not likely to last long," said Daisuke Uno, chief
strategist at treasury marketing department at Sumitomo Mitsui
Banking Corp, referring to the U.S. Federal Reserve's rescue plan
in the wake of the near-collapse of the securities firm in March.
"Even if these two companies are saved by these measures,
what happens when the next one comes?" he said.
Many investors stayed cautious ahead of quarterly earnings
this week by major financial institutions such as Citigroup <C.N>
and Merrill Lynch <MER.N>.
"Investors need to see how much more losses financial
institutions will report," said Fumiyuki Nakanishi, group manager
of investment information department at SMBC Friend Securities.
The benchmark Nikkei <> ended the morning up 146.21
points at 13,185.90. The broader Topix <> gained 1.3 percent
to 1,302.79.
Mitsubishi UFJ climbed 1.7 percent to 1,009 yen and No. 2
Mizuho Financial Group <8411.T> gained 2.4 percent to 548,000
yen.
NISSHINBO JUMPS
Nisshinbo ended the morning up 8 percent at 1,332 yen, the
biggest percentage gainer on the Nikkei. Casual clothing retailer
Fast Retailing Co Ltd <9983.T> gained 2 percent to 10,430 yen,
the biggest contributor to the Nikkei.
Steel shares rose sharply, with Japan's No.2 JFE Holdings Inc
<5411.T> up 7.5 percent at 5,570 yen. No. 1 Nippon Steel Corp
<5401.T> climbed 5.2 percent to 591 yen.
"Even though there have been some bad news like Toyota's
production cut, steel shares are bargain," SMBC Friend's
Nakanishi said.
Shares in Yahoo Japan <4689.T>, one-third owned by Yahoo Inc
<YHOO.O>, fell 2.3 percent to 40,050 yen after the U.S. parent
rejected a joint proposal from Microsoft Corp <MSFT.O> and
billionaire investor Carl Icahn that would see Microsoft buy its
search business and leave Icahn in charge of the rest.
[]
Trade was moderate, with 875 million shares changing hands,
compared with last week's morning average of 926 million.
Advancers outnumbered decliners by more than 3 to 1.
(Editing by Sophie Hardach)
