Nikkei rises above 9,000 on U.S. easing expectations

TOKYO, Sept 1 (Reuters) - Japan's Nikkei stock average rose 1 percent on Thursday to clear the psychologically key 9,000 level for the first time in two weeks, tracking U.S. gains on expectations of more easing by the Federal Reserve.

But further gains are likely to be limited ahead of key U.S. economic data later this week, traders said.

"Japan's rebounds are smaller than U.S. rebounds," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

"But there was still a 'reality check' that stocks were oversold in August, and we're seeing some rebalancing, and at least we are unlikely to see the kind of hedge fund redemptions we saw in August," he said.

U.S. non-manufacturing data from the Institute for Supply Management and U.S. jobs data will be released on Thursday and Friday, respectively. These will provide clues as to the strength of the U.S. economy and the likelihood of more Fed steps.

"The tone is heavy until investors see the U.S. data and have a better idea of what to expect," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

U.S. stocks closed out their worst month in more than a year on an up note on Wednesday, after sentiment turned dramatically in recent days on expectations the U.S. central bank will again intervene to support the economy.

The benchmark Nikkei was up 1 percent at 9,048.32 in midmorning trade. The broader Topix index also gained 1 percent, to 778.14.

The Nikkei finished nearly flat on the day at 8,955.20 on Wednesday, and lost 8.9 percent in August. The broader Topix index gained 0.4 percent to 770.60, and lost 8.4 percent during the month.

Sony Corp rose 2.2 percent to 1,701 yen, after dropping 1.8 percent on Wednesday following a brokerage downgrade, as investors bought on dips, helped by positive sentiment in the overall market.

Sony shed 12 percent over the past month, underperforming the Nikkei.

Its first tablet computer is scheduled to hit shelves this month, but the product failed to impress analysts.

"Investors are not buying back Sony shares because of the new tablet," said Nobuo Kurahashi, an analyst at Mizuho Investors Securities. "The iPad's success has proved that the tablet market is lucrative, so Sony's decision to enter the market was positive. But it could be very challenging for any tablet maker other than Apple to thrive in this market, and Sony is no exception." (Additional reporting by Ayai Tomisawa; Editing by Chris Gallagher)