Nikkei rises 0.6 pct after US stocks recover

TOKYO, Aug 3 (Reuters) The Nikkei average rose 0.58 percent on Thursday as a recovery in U.S. stocks helped shares of exporters, such as Toyota Motor Corp., which have come under pressure from worries about the U.S. Federal Reserve's next move on interest rates.

''The U.S. market looks eager to move on and rise further, assuming a favourable scenario of a halt in interest rate hikes,'' said Norihiro Fujito, general manager at Mitsubishi UFJ Securities' investment research and information division. ''That is inspiring buying here.'' The market is waiting to see if the Fed raises rates for the 18th consecutive time at a meeting next week.

The United States is a key market for Japanese products, and its monetary policy affects domestic consumer spending and influences global investors' decisions.

The Nikkei was up 89.26 points at 15,553.55 as of 0049 GMT.

The broader TOPIX index was 0.56 percent higher at 1,578.45.

Major companies to announce earnings later in the day include Mitsui O.S.K. Lines Ltd., Mitsubishi Estate Co. Ltd., Konica Minolta Holdings Inc. and Nippon Telegraph and Telephone Corp.

Shares in Toyota Motor, Japan's biggest auto maker, gained 2 percent to 6,080 yen, approaching a two-month high marked on Monday as expectations for higher profits grew ahead of its quarterly earnings announcement on Friday.

Latest data on Tuesday also showed that Toyota's auto sales in the United States surged 16 percent in July, driving past Ford Motor Co. into the second spot for the first time.

Companies posting strong earnings were also in favour.

Mitsubishi Materials Corp., Japan's biggest non-ferrous metal smelter, rose 3.6 percent to 493 yen after the company said its operating profit jumped 67 percent in the April-June quarter thanks to increased demand for copper for use in cars and IT devices.

Nippon Suisan Kaisha Ltd. jumped 4.8 percent to 629 yen after the seafood processing company posted a 31 percent rise in group net profit for the three months to June.

REUTERS VJ RK0657