Nikkei edges up as exporters gain on yen

TOKYO, Mar 12 (Reuters) The Nikkei average rose 0.83 percent on Monday, led by shares of exporters such as Sony Corp.

following a fall in the yen and an advance in U.S. stocks.

Shares reliant on domestic demand such as banks and real estate firms also rose after data released just before the start of trade showed Japan's economy grew 1.3 percent in October-December from the previous quarter, up from an initial estimate of a 1.2 percent expansion.

''After opening higher on a softer yen and the upward revision of GDP, gains may be limited as investors watch carefully what will happen to Nikko Cordial,'' said Hiroaki Kuramochi, managing director at Bear Stearns.

Nikko Cordial Corp., the third-largest Japanese brokerage, risks losing its listing on the Tokyo bourse over an accounting scandal at its merchant banking arm.

Kyodo news agency said last week the bourse is likely to decide this week on delisting Nikko Cordial, quoting a senior official at the exchange.

The Nikkei was up 143.06 points at 17,307.10 as of 0059 GMT.

The broad TOPIX index rose 0.87 percent to 1,745.39.

The dollar was at 118.25 yen early in Tokyo, holding on to much of its gains made on Friday, when it jumped on data showing that the U.S. economy added 97,000 jobs in February.

Shares in exporters rose with Sony up 1.8 percent at 6,270 yen and Toyota Motor Corp. adding 0.5 percent to 7,900 yen.

A softer yen is a boon to exporters as it lifts the value of their overseas sales when converted into the Japanese currency.

Investors hoping for a better deal have kept Nikko's shares above Citigroup's 1,350 yen a share offer price since the bank unveiled its bid on Tuesday. Shares of Nikko Cordial were down 0.7 percent at 1,400 yen.

If successful, the acquisition would be Citigroup's largest in Asia and Japan's biggest foreign buyout to date.

Shares of Tokyo Electron Ltd. gained 1.4 percent to 8,680 yen after the Nikkei business daily said on Saturday the chip equipment maker is likely to beat its annual operating profit forecast by 4 percent thanks to strong spending by makers of semiconductors.

Among other gainers, Sumitomo Mitsui Financial Group Inc.

was up 1.8 percent at 1.14 million yen, while Sumitomo Realty&Development Co. Ltd. climbed 1.9 percent to 4,910 yen.

Reuters DKS VP0700