Nikkei eases from 6-mth high, sentiment stays upbeat

* Nikkei pulls back from 6-month high
* Profit-taking in financials, automakers
* Hopes for Greece bailout despite reports of delay
* Tepco soars on report govt restarting nuclear plants

By Mari Saito
TOKYO, Feb 16 (Reuters) - Japan's Nikkei stock average
retreated from a six-month high in choppy trade on Thursday, but
sentiment remained upbeat on the back of easing steps from the
Bank of Japan that have weakened the yen.
After making sharp gains this week, some market participants
even said the Nikkei could test 10,000 in the next few weeks if
trading volume continues to grow, although they cautioned it was
likely to be a slow and steady climb.
"The fact that autos and financials haven't seen any major
adjustment after big gains is an indication of the strength of
current market sentiment," said Yumi Nishimura, senior technical
analyst at Daiwa Securities.
"Domestic investors are still somewhat bearish on the market
which can also be interpreted as a sign that there is room for
the market to aim higher," she said.
Some bluechip exporters fell as investors took profits after
a strong rally the previous day. Nissan Motor Co lost
1.3 percent, while Mitsubishi UFJ Financial Group shed
1.7 percent and Sumitomo Mitsui Financial Group dropped
1.3 percent.
The benchmark Nikkei closed down 0.2 percent at
9,238.10, with the cash market largely shrugging off signs
that a second bailout for Greece may be delayed.
"I personally don't think the Nikkei will rally to 10,000 by
the end of the month, but I don't think it's surprising that
some people are taking this point of view," said Toshiyuki
Kanayama, senior market analyst at Monex Inc.
"I do think BOJ's additional easing programme has sent a
very strong message to foreign investors. Just by looking at
their buying yesterday you can tell that they have interpreted
the BOJ's message as a clear change in policy stance. Foreign
players are bullish in this market."
The Nikkei volatility index surged 6.7 percent, as
investors bought protection against a sharp pull back.
The broader Topix slipped 0.3 percent to 800.25.
Nearly 2.5 billion shares changed hands, down from a six-month
high of 2.91 billion shares the previous session.
Some laggard stocks rose. Nintendo, which shed
more than half of it value last year, advanced 1.3 percent.
Tokyo Electric Power Co (Tepco) surged 3.8 percent
after the Asahi newspaper said Japan's ruling Democratic Party
was in discussions in favour of restarting nuclear plants that
had been shuttered after last year's March earthquake.
The Nikkei is up 9.3 percent so far this year, supported by
the return of foreign investors, who were net buyers of Japanese
stocks for the seventh straight week through Feb. 11. That
compares with a 6.8 percent rise for the U.S. S&P 500 and
a 7.4 percent gain for Europe's FTSEurofirst 300.
Goldman Sachs wrote in their portfolio strategy note on
Wednesday that Japanese equities were finally catching up to the
global rally and said it had now expanded its cyclical
recommendation to banks, insurance and real estate.
Goldman lifted its six-month Topix target by 24 percent to
900 from 725, representing an upside of 12.5 percent
from Thursday's close.

10,000 IN SIGHT
Nomura was also bullish, saying that continued buying of
high-beta stocks will support automakers, machinery, financials
and trading sectors.
But Nomura expected the Nikkei to consolidate at the
9,000-9,300 level for now before attempting to head to 10,000 --
a level not seen since Aug 1 -- in late February or early March.
Paris-based technical research firm Day By Day also expected
the Nikkei to rally to 10,000 in the coming weeks, saying the
break above the descending trendline indicated the continuation
of the bounce towards 10,200 and possibly higher.
"The tsunami low has been tested in several occasions, and
it is now firmly established as a base for a reversal," it said
in a note. "The 9,150 resistance level, the late October high,
has been finally passed thus ending the bearish medium trend."