* Nikkei up on short-covering, buoyed by U.S. gains

* But 10,000 resistance seen strong, next target 10,200

* Techs up after gains by U.S. peers, banks rise

* Late rise in yen against dollar pares gains

By Elaine Lies

TOKYO, Nov 10 (Reuters) - Japan's Nikkei average rose 0.6 percent on Tuesday as trading houses climbed after rises in commodities the day before, though a late rise by the yen against the dollar pared gains in many shares. Advantest Corp (6857.T: Quote, Profile, Research) and other chip-related shares rose after gains by their U.S. peers, while bank shares climbed after remarks by Japan's banking minister suggesting the government may not strictly enforce capital requirements for banks. David Riley, co-head of global sovereign ratings at Fitch Ratings, told Reuters Television in an interview that Fitch would have to review its AA-minus rating on Japanese government bonds if there was a material increase in debt issuance above the current 44 trillion yen ($490 billion) next fiscal year. [ID:nT286946]

Analysts said such long-term uncertainties would keep Japanese shares lagging behind their global peers.

"It's hard to get foreign investors to come and buy Japan, because even though earnings have been good, compared to the rest of the world their recovery has been on the weak side," said Hideyuki Ishiguro, a supervisor at Okasan Securities.

Others pointed to a broad range of factors inhibiting buying of Japanese shares including the yen's strength against the dollar and worries about a rise in government bond issuance.