Nikkei climbs 1 pct as exporters rise, property up

By Elaine Lies

TOKYO (Reuters) - Japan's Nikkei stock average climbed 1 percent on Wednesday, with Canon Inc and fellow exporters leading it higher after the dollar gained against the yen on oil's fall to a six-week low.

Mitsubishi Estate Co Ltd and Mitsui Fudosan Co Ltd surged after JPMorgan initiated coverage of them with an "overweight" rating, and other property firms rose in tandem.

Banks gained on relief that major U.S. bank results are now over, with most performing better than expected.

But gains were limited by lingering worries about the U.S. economy, with investors drawing back before Japanese earnings results start moving into higher gear later this month.

"There's definitely a sense that the market has survived potential problems, now that the U.S. bank earnings are behind it, and this buoyed financials both on Wall Street and in Tokyo," said Yutaka Miura, senior technical analyst at Shinko Securities.

"But now Japanese results lie ahead, along with a sense that not many good things can be expected from this, so the Nikkei is unlikely to be pushed actively higher," he said.

Other market players said that while things may look good for Wall Street at this point, much uncertainty still lies ahead.

"We're just seeing a temporary bright patch," said Yoku Ihara, manager of the investment information department at Retela Crea Securities. "It's still far too early to let down our guard."