TOKYO, Nov 16 (Reuters) - Japan's Nikkei stock average edged up 0.1 percent in see-saw trade on Monday, buoyed by defensive shares such as retailers but weighed down by exporters and tech shares despite data showing Japan's economy expanded at the fastest pace in two years in July-September.

Falls in bank shares also weighed on the market after three sources said Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) would issue about $11 billion in new shares to meet stricter capital requirements and boost lending in Asia. [ID:nBNG152533]

Japan's economy grew 1.2 percent in the third quarter from the previous three months, marking a second straight quarterly expansion, but analysts warn the recovery may lose momentum in coming quarters due to weak domestic demand. [ID:nT339912]

The benchmark Nikkei .N225 gained 12.38 points to 9,782.69 after spending much of the morning in negative territory, while the broader Topix .TOPX lost 0.5 percent to 862.75.

Hitachi Ltd (6501.T: Quote, Profile, Research), Japan's biggest electronics firm by revenue, slid 8.5 percent after two sources familiar with the matter said it plans to raise up to 400 billion yen ($4.5 billion) by issuing new shares and convertible bonds to shore up its battered capital base. [ID:nT155947]

"The bank fund-raising is pretty much unavoidable, and now we have Hitachi as well," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

"But it won't end here -- there's other companies out there in the same situation and we're likely to see a whole rush of share issuance, raising some supply concerns." (Reporting by Elaine Lies; Editing by Chris Gallagher)