Japanese shares held onto morning gains by mid-afternoon on Friday, bolstered by a rise in Honda Motor Co <7267.T> and other auto makers on the dollar's climb to a four-month high against the yen. Investors also bought insurance firms on hopes that Japan's recovery will soon filter through to the domestic sector. But banks and real estate firms, which enjoyed handsome gains recently, succumbed to profit-taking, curbing further buying in the overall market. The market keenly awaited key U.S. jobs data due out later in the day, as well as Wall Street's reaction to the data. The benchmark Nikkei average <.N225> was up 0.31 percent at 11,437.36 as of 0445 GMT and the broader TOPIX index <.TOPX> was up 0.16 percent at 1,122.71. "There's somewhat a feeling of content after the Nikkei reached 11,500," said Nagayuki Yamagishi, a senior strategist at UFJ Tsubasa Securities.
The Nikkei earlier rose as high as 11,517.91, piercing the 11,500 mark for the first time since June 6, 2002. Millea Holdings <8766.T>, Japan's biggest non-life insurance firm, was up 3.36 percent at 1.54 million yen as investors expanded their interest in the sector after locking in profits in recently high-flying banks, warehouses and real estate firms. Mizuho Financial Group Inc <8411.T>, Japan's biggest banking group by assets and the most active issue by value, was unchanged at 367,000 yen after hitting a record high of 377,000 yen soon after the opening. Another notable gainer was Kanebo Ltd <3102.T>, cheered by media reports that the state body that helps restructure ailing firms, the Industrial Revitalisation Corp of Japan (IRCJ), is weighing a plan to extend financial assistance to not only its cosmetics business but other operations. The reports said the IRCJ and Sumitomo Mitsui Banking Corp <8316.T>, Kanebo's main bank, are finalising details of the plan. Shares of Kanebo rose 10.81 percent to 123 yen, breaking above a range in which they hovered after Kanebo said on February 16 it had decided to scrap plans to sell its cosmetics unit to top household products maker Kao Corp <4452.T> and turned to the IRCJ to revive the unit's operations. In the auto sector, number-two auto maker Honda, which generates more than three-quarters of its sales overseas, jumped 2.87 percent to 5,020 yen and rival Nissan Motor Co <7201.T> advanced 2.02 percent to 1,265 yen. A firmer dollar helps boost exporters' overseas profits when repatriated home. But some semiconductor-related shares fell following a disappointing revenue forecast update by Intel Corp . Tokyo Electron Ltd <8035.T>, Japan's biggest chip-making equipment maker, fell 2.39 percent to 6,930 yen.///