Nikkei gains as exporters rise, tech shares strong

                                
 * Nikkei up 1.1 pct, but profit-taking limits gains
                                
 * Weaker yen boosts exporters, risk appetite rising
                                
 * Investors keen to buy beaten-down shares like carmakers
                                
 * Tech shares rise after sharp sell-off in 2008
 (Adds stocks, details)
                                
 By Elaine Lies
                                
 TOKYO, Jan 6 (Reuters) - Japan's Nikkei average rose 1.1
percent on Tuesday, the first full trading day of 2009, as Canon
Inc <7751.T> and other exporters rose on a weaker yen and hopes
for the U.S. administration taking office later this month.
                                
 Investors keen to buy shares that had been sold off heavily
last year helped boost high techs such as Kyocera Corp <6971.T>
and carmakers, while Fast Retailing Co Ltd <9983.T> rose on
robust December sales.
Toyota Motor Corp <7203.T> rose in line with the broader
market, despite a plunge in U.S. auto sales for December, after
it said it would tackle the sharp deterioration in global demand
with plans to halt production at all of its domestic plants for a
total of 11 days in February and March. [ID:nT158]
                                
 "Growing expectations for the administration of (U.S.
President-elect Barack) Obama are making investors that much more
willing to take risks, and I think we're also seeing more buying
by foreign investors," said Hideyuki Ishiguro, supervisor at the
investment advisory department of Okasan Securities.
 "It's a fact that foreign orders are increasing, and I think
the more established stock markets have greater liquidity than
those of emerging markets."
                                
 Wall Street slipped on Monday as investors moved to lock in
profits, but Ishiguro said that Tokyo shares were supported by a
sense that they remained relatively cheap. The Nikkei lost 42
percent in 2008, its worst year ever.
                                
 "The sort of scenario in which the market will really plunge
seems to be behind us, so...it's not that bad a time to invest,"
said Hiroaki Osakabe, a fund manager at Chibagin Asset
Management.
                                
 "Of course, though, we still have the whole issue of company
results ahead of us. But there does seem to be a small shift
going on right now from bonds to stocks."
 The benchmark Nikkei <.N225> gained 101.55 points to 9,144.67
after hitting 9,171.03, its highest point in two months. The
broader Topix <.TOPX> rose 0.5 percent to 880.51.
                                
 But some in the market still urged caution.
                                
 "The Nikkei has gone up for five trading days, and there's a
sense the market may be a bit overheated, with investors moving
to lock in profits," said Hiroichi Nishi, general manager at the
equity division of Nikko Cordial Securities.
                                
 EXPORTERS, HIGH TECH
The U.S. currency hit a nearly one-month high against the yen
on Monday as investors cheered Obama's plans to propose up to
$310 billion in tax cuts as part of a massive economic stimulus
package, but pared its gains slightly during Tokyo trade.
[ID:nN04350872]
                                
 Still, the dollar remained above 93 yen <JPY=>, giving
exporters a boost. A stronger yen eats into profits when
repatriated.
                                
 Canon climbed 3.9 percent to 2,940 yen, making it the
third-largest contributor to the Nikkei 225 by volume weight.
Sony Corp <6758.T> rose 5.8 percent to 2,085 yen and Hitachi Ltd
<6501.T> rose 4.7 percent to 381 yen.
                                
 Toyota climbed 1 percent to 3,040 yen.
                                
 Okasan's Ishiguro said the market had to some extent factored
in predictions of bad results for high-tech firms in the current
quarter and investors were buying on expectations of a recovery
in the second half of the year.
                                
  Kyocera rose 4.3 percent to 6,870 yen and Advantest Corp
<6857.T> climbed 3 percent to 1,551 yen. Tokyo Electron <8035.T>
gained 4.9 percent to 3,450 yen.
                                
 Fast Retailing gained 2.5 percent to 13,620 yen after
December same-store sales at its domestic Uniqlo casual clothing
chain climbed 10 percent from the same month a year earlier, with
the company saying aggressive sales promotion led to robust
sales.
                                
 Investors moved to lock in profits on some trading houses,
which had surged on Monday as oil prices rose, despite still
further increases after Tokyo trading hours.
                                
 Mitsubishi Corp <8058.T> erased early gains to fall 0.4
percent to 1,347 yen, while fellow trader Mitsui & Co <8031.T>
edged down 0.1 percent to 977 yen.
                                
 Trade was moderate on the Tokyo exchange's first section,
with 975 million shares changing hands, compared with Monday
morning's 1.1 billion shares.
                                
 Advancing stocks beat declining ones, 834 to 678.
  (Reporting by Elaine Lies; Editing by Edwina Gibbs)