* Nikkei strikes 3-month intraday high on US economy hopes
* Exporters up as yen falls to 5-month lows vs dollar, euro
* Banks gain on U.S. accounting rule change
* Volume picks up as overseas investors buy actively
By Rika Otsuka
TOKYO, April 3 (Reuters) - Japan's Nikkei average touched a
three-month intraday high on Friday after more data raising hopes
the U.S. economic downturn is moderating, with exporters such as
Toyota Motor Corp <7203.T> jumping on a weaker yen.
But the Nikkei trimmed earlier gains as domestic investors
locked in profits on a rally in the past three weeks, while
active buying by overseas investors helped boost volume and kept
the benchmark in positive territory.
Banking shares such as Japan's top lender Mitsubishi UFJ
Financial Group <8306.T> gained after U.S. accounting rulemakers
bowed to congressional and financial industry pressure on
Thursday to allow more flexibility in valuing toxic assets.
[]
Trade was active with 1.5 billion shares trading hands on the
Tokyo stock exchange's first section, compared with last week's
morning average of 1.1 billion.
"Investors are becoming more optimistic about economies
around the world, and that will keep stocks on an upward trend
for a while," said Yoshinori Nagano, a senior strategist atDaiwa
Asset Management. "But in the short term the market may pause as
people believe it is overheated after a rapid and sharp rally."
The benchmark Nikkei <> edged up 0.6 percent or 49.94
points to 8,769.72, after hitting a three-month intraday high of
8,884.63 in early trade. The Nikkei has recovered from a 26-year
closing low near 7,000 on March 10.
Declining shares outpaced advancing ones by 887 to 660.
The broader Topix <> climbed 0.9 percent to 833.98.
U.S. factory orders rose in February for the first time in
seven months, boosting industrial, technology, consumer
discretionary and energy stocks on Wall Street on Thursday.
[] []
Hopes for an improving global economy grew after leaders of
the G20 also clinched a $1.1 trillion deal on Thursday to combat
the worst economic crisis since the Great Depression and said
financial rules would be tightened to stop it happening again.
[]
Orders for Japanese stocks placed through 12 foreign
securities houses before the start of trade showed overseas
investors were net buyers for the third straight day on Friday,
also keeping a bullish tone for the Tokyo market.
"Risk appetite among overseas investors is recovering thanks
to rising share prices in the U.S. and European markets," said
Yutaka Miura, a senior technical analyst at Shinko Securities.
The Nikkei could rise above the 9,000 yen level next week
unless the U.S. monthly employment report due later in the day
sparks a stock sell-off, hitting overseas investors' sentiment,
Miura said.
Investors will be watching the U.S. Labor Department's March
jobs data at 1230 GMT, especially after data the previous day
showing the number of U.S. workers filing new jobless claims at a
26-year high. []
FALL IN YEN BOOSTS EXPORTERS
The dollar rose above the psychologically important 100 yen
level for the first time in five months on Friday and the euro
also climbed to its highest in more than five months against the
Japanese currency. []
That encouraged investors to pick up exporters. Toyota, the
world's biggest automaker, jumped 7.5 percent to 3,710 yen. Honda
Motor Co <7267.T> advanced 3.8 percent to 2,840 yen and Nissan
Motor Co <7201.T> gained 3.2 percent to 452 yen.
Electronics giant Sony Corp <6758.T> was up 2.8 percent at
2,385 yen.
Banks advanced after their U.S. peers rose on the changes in
U.S. accounting rules. Mitsubishi UFJ gained 1.1 percent to 534
yen and Mizuho Financial Group <8411.T>, Japan's No.2 bank, rose
1 percent to 210 yen.
Nippon Suisan Kaisha Ltd <1332.T> slid 3.7 percent to 258 yen
after the Nikkei business daily said the frozen food processor is
likely to post a bigger-than-expected annual net loss of 16
billion yen ($160.8 million).
($1=99.53 Yen)
(Editing by Michael Watson)
