* Nikkei hits 2-month high on hopes for better year
* Weaker yen boosts exporters such as Honda Motor Co
* Resource shares climb as oil surges on Mideast worries
* But market players wary as uncertainties remain
(Adds stocks, details)
By Elaine Lies
TOKYO, Jan 5 (Reuters) - Japan's Nikkei average began 2009 on
a strong note on Monday, climbing 2.1 percent and hitting a
two-month high on hopes this year will be better than last, the
worst in the Nikkei's history.
Honda Motor Co <7267.T> and other exporters climbed on a
weaker yen. Resource-linked firms such as trading houses surged
as oil jumped more than 3 percent, after an Iranian military
commander reportedly called on Islamic countries to cut oil
exports to supporters of Israel over Israel's ground offensive in
the Gaza Strip to stop Hamas rocket attacks. []
"Risk aversion has eased in the last week and this has sent
both the Dow and the Nikkei higher," said Nagayuki Yamagishi, a
strategist at Mitsubishi UFJ Securities.
"There's quite a lot of expectations for the government of
(U.S. President-elect Barack) Obama and the policies he's likely
to enact, but when he actually takes office this mood may
evaporate and a lot of problems still linger."
In a half-day of trade that began with a ceremony attended by
young women in colourful brocade kimonos, the benchmark Nikkei
<> gained 183.56 points to 9,043.12, ending above 9,000 for
the first time in two months.
Though it gained on its final day of trade on Dec. 30, the
Nikkei lost 42 percent for 2008, the worst year in its history.
The broader Topix <> rose 1.9 percent to 875.91.
U.S. stocks surged on Friday as investors discounted
discouraging economic data, including Friday's release showing a
sharp contraction in factory activity, with anticipation of a
turnaround in the second half of 2009 buoying the market. []
The dollar rallied to a three-week high against the yen on
Friday after the strong Wall Street performance encouraged risk
appetite. It was fetching around 92.06 yen in Tokyo <JPY=>.
Market players remained wary despite the surge, with several
saying they felt the Nikkei might be a bit too high.
"The reason for the recovery to 9,000 remains hazy right now,
and unless we can clarify this during the next few days, hanging
on to this level may be tough," said Masayoshi Okamoto, head of
dealing at Jujiya Securities.
"We need to know somehow that the worst is over, whether it's
through an economic indicator or something about company results
that's positive. But when we'll get this certainty is unclear."
In one sign this may still be far away, drugmaker Daiichi
Sankyo <4568.T> finished flat, erasing earlier losses, after the
Nikkei business daily said it is likely to book more than 300
billion yen ($3.26 billion) in losses for the April-December
period stemming from the declining stock price of its Indian
subsidiary, Ranbaxy Laboratories Ltd <RANB.BO>. []
OIL SURGE BOOSTS RESOURCE SHARES
Energy-linked shares surged in the wake of the Middle East
troubles and concerns over a deepening row between Russia and
Ukraine over gas prices.
Israeli troops and tanks split the Gaza Strip and ringed its
main city on Sunday in an offensive against Hamas that has killed
500 Palestinians. []
Oil and gas field developer Inpex <1605.T> climbed 3.3
percent to 721,000 yen, while Japan's largest trading firm
Mitsubishi Corp <8058.T> surged 9.2 percent to 1,352 yen. Fellow
trader Mitsui & Co <8031.T> jumped 8.6 percent to 978 yen.
Market players said investors were turning their eyes to
shares that had been sold off especially sharply during the last
year, with automakers -- among the worst-hit sectors in 2008 --
and financials gaining.
Honda climbed 2.7 percent to 1,958 yen and Toyota Motor Co
<7203.T> gained 3.6 percent to 3,010 yen, shrugging off a weekend
report in Japan's Sankei newspaper that Toyota will freeze plans
to build new factories in Thailand and Russia due to sluggish
global demand.
Suzuki Motor Corp <7269.T> rose 3.7 percent to 1,273 yen
despite a report by the Nikkei business daily that it will shelve
a plan to launch large-sized cars in 2010 and delay the start of
overseas factories amid a sharp deterioration in the global auto
market.
Tech shares climbed, with Advantest Corp <6857.T> rising 5.3
percent to 1,506 yen and Kyocera Corp <6971.T> climbing 3.3
percent to 6,590 yen.
In Monday's half-day of trading, volume picked up on the
Tokyo exchange's first section with 1.1 billion shares changing
hands, compared with 854 million shares on the last trading day
of 2008, also a half-day.
Advancing stocks outpaced declining ones, 868 to 715.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
