* Nikkei touches 3-month high above 9,000
* Dollar climbs above key 100 yen level, boosts exporters
* SMFG overwhelmed by sell orders
By Rika Otsuka
TOKYO, April 10 (Reuters) - Japan's Nikkei share average
touched a three-month high above the key 9,000 level on Friday
after U.S. shares jumped on better-than-expected preliminary
results from Wells Fargo, while a softer yen boosted exporters
such as Sony Corp <6758.T>.
But the benchmark trimmed gains as some players locked in
profits on a sharp rally in the past month, and amid caution
ahead of Easter holidays.
Sumitomo Mitsui Financial Group, Japan's third-largest bank,
was awash with sell orders after it said it faces a net loss of
$3.9 billion for the financial year just ended and would raise as
much as $8 billion through the sale of shares. []
Solar power-linked firms such as Sharp Corp <6753.T> and
automakers such as Toyota Motor Corp <7203.T> continued to draw
support from a $154 billion economic stimulus plan outlined by
the ruling Liberal Democratic Party the previous day.
"The Nikkei is likely to test this year's peak of around
9,300 in the near term, supported by growing optimism towards the
U.S. economy, said Takahiko Murai, general manager of equities at
Nozomi Securities.
"But further gains in Tokyo stocks might be limited as
executives at major firms here still hold pessimistic views on
the Japanese economy."
The benchmark Nikkei <> was up 0.5 percent or 47.45
points at 8,963.51 by midday, after rising as much as 1.7 percent
above the psychologically important 9,000 mark for the first time
since Jan. 8.
The broader Topix index <> edged up 0.4 percent to
845.47.
Trade was active, with 1.7 billion shares changing hands,
compared to last week's morning average of 1.1 billion.
Declining shares outpaced advancing ones, 811 to 756.
MIZUHO ALSO HURT AFTER SMFG
U.S. stocks jumped the previous day as Wells Fargo <WFC.N>
said it expects to report a record quarterly profit,
strengthening hopes that deterioration in the financial sector
was abating. []
But news of SMFG's massive capital raising and large loss
weighed on the domestic sector.
SMFG was quoted at 3,110 yen -- down 13.9 percent or its
daily limit of 500 yen and No. 2 lender Mizuho Financial Group
<8411.T> tumbled 9.1 percent to 199 yen.
"The SMFG news fuelled concerns over Japanese banks," said
Mitsushige Akino, chief fund manager at Ichiyoshi Investment
Management Co Ltd.
"It reminded investors that Japanese banks have lots of
unrealised losses on their hefty equities holdings and that they
may need to increase loan-loss reserves as the economy is
stumbling."
Japan's No. 1 lender Mitsubishi UFJ Financial Group <8306.T>
fell 3.1 percent to 506 yen
The dollar traded 100.30 yen <JPY=> on Friday, keeping most
of gains it made the previous day on an U.S. stock rally. []
A weaker yen boosts the value of profits Japanese firms make
abroad in yen terms and is usually a supportive factor for
exporters.
Electronics, automakers and solar power-related firms also
gained on the economic stimulus plan that raised hopes of
increased consumer spending.
Electronics giant Sony advanced 3 percent to 2,555 yen.
Panasonic Corp <6752.T> rose 2.3 percent to 1,310 yen and Toshiba
Corp <6502.T>, climbed 3.7 percent to 334 yen.
Toyota Motor Corp rose 1.3 percent to 3,960 yen, Mitsubishi
Motors Corp <7211.T> climbed 1.4 percent to 150 yen.
Sharp Corp <6753.T>, the world's No.2 maker of solar cells,
was up 1.7 percent at 915 yen.
(Editing by Edwina Gibbs)
