Nikkei up 1.6 pct as exporters rise on Wall St, yen

                                
 (Adds stocks and comments)
                                
 By Taiga Uranaka
                                
 TOKYO, April 21 (Reuters) - Japan's Nikkei stock average rose
1.6 percent on Monday, up for a fifth day as Honda Motor Co Ltd
<7267.T> and other exporters climbed on Wall Street's rally and a
softer yen.
                                
 Financials such as Japan's largest bank Mitsubishi UFJ
Financial Group <8306.T> gained on receding pessimism about the
credit crisis after investors welcomed Citigroup <C.N> efforts to
resolve billions of dollars in writedowns.
                                
 Earth-moving equipment maker Komatsu Ltd <6301.T> soared
after bigger rival Caterpillar <CAT.N> reported
stronger-than-expected profits.
                                
 "Investors are breathing a sigh of relief," said Yoku Ihara,
a manager of investment information at Retela Crea Securities.
"Earnings by Caterpillar and others showed the struggles of
financials may not have spread into other businesses."
                                
 The benchmark Nikkei average <.N225> ended the morning up
221.24 points at 13,697.69. The broader TOPIX index <.TOPX> added
1.8 percent to 1,327.55.
                                
 U.S. stocks surged on Friday as results from Internet leader
Google <GOOG.O> and Caterpillar showed resilience in the face of
a slowing economy, with profits that defied Wall Street's modest
expectations.
                                
 EXPORTERS UP
                                
 Honda jumped 6.9 percent to 3,270 yen, giving the biggest
individual boost to the Nikkei, while Toyota Motor Corp <7203.T>
rose 4.1 percent to 5,320 yen. Digital camera maker Canon Inc
<7751.T> gained 4.5 percent to 5,300 yen.
                                
 The dollar was trading at 103.95 yen <JPY=>, after marking
its highest level since late February at 104.64 yen in New York
on Friday. The dollar has regained ground since mid-March, when
it fell below 96 yen.
                                
 "The Tokyo market had fallen on forex, so it should rise on
forex," said Masayoshi Okamoto, head of dealing at Jujiya
Securities.
                                
 He said investors remained split over how much the market has
priced in a decline in corporate profits for this business year,
but worries about the negative impact of a stronger yen would
ease substantially if the dollar climbed back to 105 yen.
                                
 Mitsubishi UFJ gained 2.8 percent to 1,038 yen. Japan's
biggest brokerage, Nomura Holdings Inc <8604.T>, rose 2.8 percent
to 1,699 yen.
                                
 Financials rose after investors were reassured that Citigroup
<C.N> was taking aggressive steps to resolve the credit problems
that led to its latest quarterly loss. [ID:nN18298428]
                                
 NEC Corp <6701.T> shot up 6.4 percent to 464 yen after the
electronics group lifted its operating profit forecast by 15
percent, in what analysts called a large upward surprise.
                                
 NEC was helped by fixed cost cuts at microchip unit NEC
Electronics Corp <6723.T>, which raised its annual operating
profit outlook to 5 billion yen ($48.2 million) from the previous
forecast of zero. NEC Electronics climbed 4.9 percent to 2,150
yen.
                                
 Trade picked up slightly, with some 857 million shares
changing hands compared to last week's morning average of 770
million.
                                
Advancers outnumbered decliners by roughly two to one.
                                
 (Editing by Brent Kininmont)