Nikkei up 0.6 pct, exporters gain on softer yen

                                
 (Adds stocks and comments)
                                
 By Taiga Uranaka
                                
 TOKYO, May 13 (Reuters) - Japan's Nikkei share average rose
0.6 percent on Tuesday, tracking overnight gains on Wall Street,
led by exporters such as Canon Inc <7751.T> on a softer yen.
                                
 The market also got a lift from Nikon Corp <7731.T> after the
precision equipment maker said that its annual profit rose 32.5
percent thanks to sales of advanced cameras and chip-making
equipment and that it planned a share buyback. [ID:nT207717]
                                
 "Investors are buying up companies with good earnings," said
Fumiyuki Nakanishi, group manager of the investment research
department at SMBC Friend Securities.
                                
 Still, rises were limited despite hefty gains by index
heavyweights, as investors locked in recent gains, with
resistance for the Nikkei average seen at the five-day moving
average around 13,800.
                                
 "The market is hung in the middle. We don't see strong market
moving factors, either positive or negative," said Yoku Ihara,
manager of the investment information department at Retela Crea
Securities.
                                
 The benchmark Nikkei average <.N225> ended the morning up
88.49 points at 13,831.85. The broader TOPIX index <.TOPX> gained
0.7 percent to 1,352.01.
                                
 Nikon jumped 8.6 percent to 3,080 yen, the biggest
contributor to the Nikkei.
                                
 FUJITSU SHINES
                                
 Fujitsu Ltd <6702.T> jumped 12.2 percent to 766 yen, the
biggest percentage gainer on the Nikkei, after the electronics
group said on Monday it forecast annual profit to more than
double this year. [ID:nT31177]
                                
 After the earnings announcement, Mitsubishi UFJ Securities
raised its rating on Fujitsu to "2" from "3", saying it believed
Fujitsu could hit its targets.
                                
 Digital camera maker Canon rose 2.7 percent to 5,400 yen and
Sony Corp <6758.T> gained 3.2 percent to 4,800 yen.
                                
 The dollar traded at 103.75 yen <JPY=>, down a bit from late
New York trade but comfortably above Monday's trough below 103
yen.
                                
 Dentsu Inc <4324.T> soared 9.2 percent to 261,000 yen after
Japan's top advertising agency said it would spend up to 60
billion yen ($578 million) to buy back nearly 11 percent of its
own stock, saying its shares looked cheap after losing about
one-fifth of their value so far this year. [ID:nT235656]
                                
 Earth-moving equipment makers Komatsu Ltd <6301.T> and
Hitachi Construction Machinery Co Ltd <6305.T> rose sharply
following a massive earthquake in China.
                                
 "There is speculation demand will increase for bulldozers and
cranes in connection with reconstruction projects in China," SMBC
Friend's Nakanishi said.
                                
 Komatsu rose 3.6 percent to 3,210 yen and Hitachi
Construction climbed 3.7 percent to 3,370 yen.
                                
 Trade remained thin, with some 851 million shares changing
hands compared to last week's morning average of 933 million.
                                
 Advancers and decliners were nearly even at 777 to 755.
                                
 ($1=103.75 yen)
                                
 (Editing by Brent Kininmont)