Nikkei climbs to 2-month high, exporters up on yen

                                
 (Adds stocks and comments)
                                
 By Taiga Uranaka
                                
 TOKYO, April 25 (Reuters) - Japan's Nikkei stock average rose
2 percent to a two-month high on Friday, with exporters such as
Fanuc Ltd <6954.T> and Canon Inc <7751.T> gaining sharply on a
weaker yen <JPY=> against the dollar.
                                
 Oil and gas field developer Inpex Holdings Inc <1605.T> fell
4 percent yen after U.S. crude oil futures <CLc1> ended down more
than $2 on Thursday, pressured by the dollar's rebound from
record lows this week against the euro.
                                
 Trade was light as investors stayed on the sidelines before a
bevy of earnings reports due later in the day from heavyweights
including automaker Honda Motor Co Ltd <7267.T> and electronics
group Toshiba Corp <6502.T>.
                                
 Spooked by the yen's steep gains in mid-March and a global
economic slowdown, investors are waiting to see how bleak the
outlook will be for Japan's export-heavy corporate earnings.
                                
 Industrial robot maker Fanuc forecast a profit decline for
this business year due to a stronger yen, assuming the dollar to
average 97 yen. It fell on Thursday following the announcement,
but it jumped 5.4 percent to 10,410 yen on Friday, providing the
biggest boost to the Nikkei average.
                                
 Digital camera maker Canon, which cut its full-year outlook
and assumes the dollar to average 100 yen, rose 4.5 percent to
5,400 yen.
                                
 "There is a considerable degree of a relief about the dollar
at the 104 yen level when companies have set their assumption at
100 yen. It makes those who do not have (stocks of exporters)
nervous," said Tomomi Yamashita, fund manager at Shinkin Asset
Management.
                                
 Still, he said such relief could be short-lived with the
earnings season progressing, as investors could be shocked back
to reality by some surprisingly disappointing outlooks.
                                
 "Actually, we should look beyond individual corporate
outlooks. I am concerned more about the outlook for the
macroeconomy," he said.
                                
 The benchmark Nikkei average <.N225> ended the morning at
13,811.90, after climbing as far as 13,822.91, its highest since
Feb. 28. The broader TOPIX index <.TOPX> rose 2 percent to
1,334.05.
                                
 Inpex shed 4 percent to 1.19 million yen, the biggest
percentage loser on the Nikkei.
                                
 EXPORTERS UP
                                
 Honda Motor Co <7267.T> rose 4.1 percent to 3,340 yen and
Toyota Motor Co <7203.T> gained 2.7 percent to 5,270 yen.
                                
 Financial climbed, with Japan's second-largest bank Mizuho
Financial Group <8411.T> up 3.8 percent at 467,000 yen.
                                
 In Osaka, Nintendo Co Ltd <7974.OS> fell 1.6 percent to
57,000 yen after it said on Thursday fourth-quarter profit jumped
60 percent, but it forecast modest annual growth of 9 percent as
it expects sales of its DS handheld machine to slow.
[ID:nT229094]
                                
 Trade was thin, with 741 million shares changing hands
compared with last week's morning average of 770 million.
                                
 Advancers outnumbered decliners by nearly eight to one.
 (Editing by Chris Gallagher)