(Updates to midmorning)

TOKYO, Jan 7 (Reuters) - The Nikkei share average climbed 2.5 percent on Wednesday, buoyed by a weaker yen that lifted Honda Motor Co (7267.T: Quote, Profile, Research) and other exporters, while tech shares gained after their U.S. peers rose on hopes for an economic stimulus package there. Regional lenders such as Shizuoka Bank (8355.T: Quote, Profile, Research) rose after a report in the daily Mainichi Shimbun that the Japanese government is looking at a plan to inject public funds into 40 or more regional banks, whose capital bases are being hurt by rising bad loans amid the financial crisis. [ID:nT323819]

The dollar on Tuesday hit its highest against the yen since Dec 1, partly on expectations that a stimulus package planned by U.S. President-elect Barack Obama will help the world's largest economy emerge from recession sooner than other industrialised nations. [FRX/] But market players said gains could be limited by investor moves to lock in profits at the highs out of a sense that gains by the Nikkei, which has risen for the past six trading days, may be overheated.

"Though the market may be sustained by hopes for the Obama economic plan, around the time he takes office we'll start to see a lot of company results coming out, and things could start to get tough," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

"People say the market has factored in poor results, with something like 20-30 percent of firms likely to show losses, but what if that number rises to 40 percent? It's anyone's guess if that's been factored in."

The benchmark Nikkei .N225 gained 232.60 points to 9,313.44, its highest since early November. The broader Topix .TOPX rose 2.1 percent to 894.64.

Tech shares were particularly strong performers after their U.S. peers rose as investors bet the sector would benefit from Obama's proposed package of spending and tax-cut measures that would total nearly $775 billion over the next two years.

The Philadelphia Semiconductor Index rose 5.1 percent on Tuesday, lending strength to Tokyo shares.

Though market players had forecast a dip as investors moved to lock in profits, Kyocera Corp (6971.T: Quote, Profile, Research) and similar companies forged higher, adding to gains made earlier this week.