* Nikkei up 0.2 pct, after rising as much as 2 pct
* Uncertainty over U.S. bank rescue plan weighs
* Nissan surges despite loss warning, Aozora slips
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Feb 10 (Reuters) - The Nikkei stock average rose 0.2
percent in see-saw trade on Tuesday, falling from earlier highs
on a firmer yen and as uncertainty about a U.S. bank rescue plan
kept investors on their toes.
Nissan Motor Co <7201.T> surged 7 percent after it announced
drastic steps on Monday to cope with the recession, saying on
Monday it would cut 20,000 jobs and joined a growing list of
automakers warning of red ink this year. []
Major banking shares such as Mitsubishi UFJ Financial Group
<8306.T> gained, but Aozora Bank <8304.T> fell nearly 2 percent
after a newspaper reported the bank is expected to report an
annual net loss of nearly 200 billion yen ($2.2 billion) and its
president may quit as early as Tuesday. []
The benchmark Nikkei dipped in to negative territory at one
point, which some market analysts said was a reaction after a
media report said that the U.S. Treasury has dropped plans to
establish a "bad bank" to buy distressed assets from commercial
banks as part of a financial rescue package.
CNBC also said the plan will still contain measures to buy up
toxic assets from financial institutions, citing a source
familiar with the plan. []
"Underlying sentiment is extremely cautious because of the
U.S. political schedule," said Fumiyuki Nakanishi, manager at
SMBC Friend Securities.
"Investors need to know (U.S. Treasury) Secretary Geithner's
announcement before buying stocks because if something unexpected
comes out, they will be battered on Thursday."
Japanese markets will be closed on Wednesday for a national
holiday.
The benchmark Nikkei <> added 15.51 points to 7,984.54
in light trade, after rising as much as 2 percent at one stage.
The broader Topix <> gained 0.4 percent to 782.30.
Geithner is set to present a bank rescue plan at 11 a.m.
(1600 GMT) on Tuesday. []
President Barack Obama's drive for emergency tax cuts and
government spending to jolt the U.S. economy out of recession
advanced on Monday when the Senate voted to end debate on an $827
billion bill, setting up a vote on Tuesday. []
"Even if the 'bad bank' won't be set up, some sort of entity
to deal with problem assets will likely be established in the
end," said Masaru Hamasaki, senior strategist at Toyota Asset
Management.
"If that entity proves to be effective, the market will
gradually evaluate it favourably."
NISSAN GAINS, AOZORA FALLS
Nissan shares surged 7.3 percent to 280 yen, while its rivals
Toyota Motor Corp <7203.T> shed 0.6 percent to 3,170 yen and
Honda Motor Co <7267.T> slipped 1.1 percent to 2,235 yen.
Exporters generally came under pressure as investors fret
over a stronger yen as it curbs exporters' overseas profits when
repatriated. Dollar/yen fell 0.3 percent to 91.16 yen <JPY=>.
<FXNEWS> []
Mitsubishi UFJ Financial Group <8306.T> climbed 3.1 percent
to 494 yen and No.2 Mizuho Financial Group <8411.T> gained 2.3
percent to 224 yen. Aozora Bank slipped 1.9 percent to 105 yen.
Leasing and financial services firm Orix <8591.T> tumbled 10
percent to 3,140 yen after it cut annual profit forecasts on
Monday, citing write-downs of its stock holdings, rising
provisions against bad loans and expectations that it won't be
able to sell properties for a profit as planned. []
Trade was light on the Tokyo exchange's first section, with
862 million shares changing hands, below last week's morning
average of 929 million.
Advancing stocks outpaced declining ones, 924 to 646.
(Editing by Edwina Gibbs)
