Nikkei rallies, exporters climb on stronger euro

* Nikkei rises 1.1 pct, extends gains for third day

* Benchmark vaults 75-day moving average

* Exporters boosted by stronger euro, financials up

By Mari Saito

TOKYO, Jan 19 (Reuters) - Japan's Nikkei average hit a
five-week closing high on Thursday, soaring past its 75-day
moving average as the euro climbed on news that the
International Monetary Fund is seeking to bolster its funds to
stem the euro zone sovereign debt crisis.

Major exporters recouped some of their recent losses as the
euro climbed against the dollar and the yen.

TDK Corp jumped 4.6 percent, while Konica Minolta
Holdings Inc advanced 1.5 percent and Canon Inc
added 0.9 percent.

Sources, present at an IMF board meeting on the issue on
Tuesday, said it was seeking to raise up to $600 billion to meet
potential financing needs but the plan faces roadblocks from the
United States and other countries.

Market participants said, however, that the bounce was more
likely than not to be short-lived as the IMF's plans lacked
details.

"So really, we can see the euro's move as temporary and the
strength of the yen will continue to weigh on the market," said
Yutaka Miura, senior technical analyst at Mizuho Securities.

The benchmark Nikkei rose 1.1 percent to 8,639.68
and rose above its 75-day moving average near 8,569, while the
broader Topix advanced 0.8 percent to 740.68.

Japan's securities and megabanks outperformed the broader
market and ranked among the biggest gainers in Tokyo, helped by
better-than-expected results from Goldman Sachs
.

Nomura Holdings, Japan's top brokerage, climbed 4.3
percent to its highest close in 10 weeks and ranked as the top
percentage gainer on the Topix Core 30 index of
blue-chip firms.

Sumitomo Mitsui Financial Group gained 2.4 percent,
Mizuho Financial Group added 1.9 percent and Mitsubishi
UFJ Financial Group rose 1.5 percent.

Trading volume ticked down from the previous session, with
2.13 billion shares changing hands on the main board, down from
2.36 billion shares on Wednesday.

CHIP-RELATED STOCKS JUMP

Market participants said prospects for Europe will become
clearer at the Group of 20 deputy officials' meeting this week
in Mexico.

Later on Thursday, Spain and France will also test investor
appetite with debt auctions, while Bank of America,
Morgan Stanley, Google, Microsoft Corp
and Intel Corp announce quarterly earnings later in the
day.

The Nikkei has risen 2.2 percent so far this month, compared
with an average gain of 1.4 percent for the month of January
between 1972 and 2011.

Sharp gainers on Thursday included recently battered
semiconductor-related shares, following a 5 percent overnight
rally in the U.S. semiconductor index.

Advantest Corp jumped 7 percent, Tokyo Electron Ltd
gained 3 percent, and Sumco Corp rallied 9.4
percent.

Investors also continued to buy small-cap construction
firms, betting they would benefit most from Japan's
reconstruction spending after last March's earthquake and
tsunami. The construction sector added 0.2 percent,
taking its gains for so far this year to 6.7 percent.

"Investors continue to buy stocks of construction companies
and other reconstruction related firms priced below 100 yen per
share that are not held by institutional investors or Japanese
life insurers," said Seiki Orimi, senior investment strategist
at Mitsubishi UFJ Morgan Stanley Securities.

"But I do believe there is a high risk in buying these
stocks because material and labour costs are high and these
smaller construction companies are not assured of strong profits
just because they win a contract."

(Additional reporting by Dominic Lau; Editing by Edwina Gibbs)