* Nikkei up 1 pct, hits over one-week high at one stage
* Exporters climb on weaker yen, hopes for US economic steps
* Machine stocks up after data, Nomura sinks on fund raising
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Feb 9 (Reuters) - The Nikkei share average rose 1
percent on Monday, after earlier hitting its highest point in
over a week, buoyed by exporters on a weaker yen and hopes for
economic stimulus measures by the U.S. government.
Komatsu Ltd <6301.T> and other machinery stocks gained after
data showing Japan's core machinery orders fell 1.7 percent in
December from the previous month, much less than expected.
[]
But Nomura Holdings Inc <8604.T> tumbled more than 10 percent
after the brokerage, Japan's biggest, said it would raise up to
$3.3 billion in its first issue of common shares in 20 years to
replenish its capital base. []
Market players said hopes for the U.S. economic steps helped
push up the market, but uncertainty over the plan's development
capped further gains.
"Investors are picking up exporters for now on
short-covering, but it's doubtful if the market will continue to
gain," said Takahiko Murai, general manager of equities at Nozomi
Securities.
"The market's focus could shift back to the deteriorating
state of the economy once it sees the U.S. stimulus plan, which
now appears that it might be smaller than expected, and due to
uncertainty over the establishment of a 'bad bank' scheme."
The benchmark Nikkei <> added 82.78 points to 8,159.40
by the midday break, after briefly hitting its highest point
since Jan. 29.
The broader Topix <> rose 0.2 percent to 792.45.
U.S. Treasury Secretary Timothy Geithner will outline the
Obama administration's financial stability plan in speech at 11
a.m. EST (1600 GMT) on Tuesday, the Treasury Department said.
The keenly awaited bank rescue plan and economic stimulus
package are key parts of President Barack Obama's strategy for
tackling the country's deepest financial crisis since the Great
Depression. []
"With aggressive stimulus steps and monetary easing in the
U.S., its economy will likely hit bottom later this year, but
strong economic growth is unlikely," said Yoshiki Shinke, senior
economist at Dai-ichi Life Research Institute.
"So Japan's exports will likely stay weak for a while."
EXPORTERS GAIN, NOMURA TUMBLES
The dollar was trading around 91.77 yen <JPY=>, after
climbing to 92.42 yen earlier on trading platform EBS, its
highest since early January. Investors welcome a softer yen as it
boost exporters' overseas profits when repatriated.
Exporters gained, with Canon Inc <7751.T> rising 3.3 percent
to 2,645 yen. Toyota Motor Corp <7203.T> climbed 3.9 percent to
3,210 yen despite forecasting a far bigger full-year loss than it
flagged several weeks ago. []
Sharp Corp <6753.T> rose 6.6 percent to 791 yen after Nomura
Securities raised its investment rating on the LCD TV maker to
"buy" from "reduce" even after Sharp warned of a first ever
annual operating loss. []
"We take a positive view of the substantial revisions, which
are aimed at completing inventory adjustments as early as
possible," Nomura said in a note to clients.
Komatsu, the world's No. 2 maker of earth-moving equipment,
shot up 5 percent to 1,082 yen, while Hitachi Construction
Machinery Co <6305.T> climbed 6.1 percent to 1,142 yen.
Nomura lost 10.1 percent to 514 yen. Nomura's capital has
been depleted by soured investments and costs related to its
acquisition of the Asian, European and Middle East operations of
failed U.S. investment bank Lehman Brothers last year.
Trade was light on the Tokyo exchange's first section, with
842 million shares changing hands, below last week's morning
average of 929 million.
Declining stocks outpaced advancing ones, 946 to 606.
(Additional reporting by the Tokyo newsroom; Editing by Chris
Gallagher)
