* Stronger-than-expected Japan's output data helps shares
* Toyota gains on sense it may be undervalued
* Eyes on development for Greece's problems -strategist
TOKYO, Feb 26 (Reuters) - Japan's Nikkei average rose 0.5
percent on Friday, with stronger-then-expected domestic output
helping counter investor jitters after weak U.S. data reinforced
concerns about a global economic recovery.
Toyota Motor Corp <7203.T> climbed nearly 3 percent one day
after testimony to U.S. lawmakers, with some investors saying
that the stock, which has lost about a fifth of its value over
the last month on its recall crisis, now looks undervalued.
Market players said the market received support from Japan's
industrial output data, which rose 2.5 percent in January,
beating economists' median estimate for a 1.0 percent rise.
Manufacturers ramped up production to meet demand from
fast-growing Asia. [] []
"The strong industrial output data was positive for the
market. Gains also follow the market's decline over the past few
days, which was probably overdone," said Soichiro Monji, a chief
strategist at Daiwa SB Investments.
"Generally speaking, the economy and corporate earnings are
improving and that helps push up stocks. Still, going forward, a
lot will depend on other factors such as Greece's problems."
The benchmark Nikkei <> rose 52.12 points to 10,154.08,
after having lost 2.4 percent in the last two days, hurt by the
stronger yen and weak data such as a sharp drop in U.S. consumer
sentiment.
The broader Topix <> gained 0.5 percent to 895.68.
The Nikkei briefly swung into negative territory earlier, but
market players said the index is unlikely to fall below 10,000,
with investors set to swoop in to bargain hunt at that level.
One analyst said foreigners who had sold on Thursday were
short-covering on Friday, boosting the cash market.
The yen held on to broad gains, partly as persistent worries
about sovereign debt problems in Greece kept investors away from
riskier currencies. Investors fret about a stronger yen as it
eats into exporters' profits when they are repatriated. []
Wall Street edged lower after U.S. January durable goods
orders unexpectedly fell and weekly jobless claims jumped,
feeding investor anxiety after poor consumer confidence and new
home sales data earlier this week. []
TOYOTA HIGHER
Toyota rose 2.6 percent to 3,355 yen. Its price-to-book ratio
(PBR) is now at about 1, while Honda Motor Co <7267.T> has a
ratio of around 1.4.
"There appear to be many individual investors who see the
current level as good for buying from a long-term perspective,
with its PBR around 1 and given its technological strengths, even
though uncertainty remains about how the recall problems will
ultimately play out," said an analyst at a domestic brokerage.
The climb comes despite a report in the Nikkei business daily
that its North American output in the February-April period will
likely fall short of its original target by 20 percent.
Shares of Aeon Co Ltd <8267.T> jumped 2.9 percent to 914 yen
after Goldman Sachs upgraded Japan's second-biggest retailer to
"buy" from "neutral", citing the potential for cost-cutting, the
likelihood that consumer spending may start to resume, and low
valuations.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
