Nikkei turns higher as weak yen lifts exporters, financials

* Nikkei turns positive as dollar trades above 96 yen
* Foreigners are buyers, while domestic institutions are
sellers - analyst

By Ayai Tomisawa
TOKYO, March 13 (Reuters) - Japan's Nikkei share average
shook off opening weakness and edged up on Wednesday as
exporters advanced on a weakening yen, while financials were
bought on ongoing expectations of easier monetary policy.
The Nikkei rose 0.2 percent to 12,333.12, moving
closer to a 4-1/2 year high of 12,461.97 hit in early trade on
Tuesday. The index opened lower on Wednesday, but moved into
positive territory in mid-morning trade after the dollar rose
above 96 yen.
Market players said that while foreigners and margin traders
were Wednesdays' main buyers, domestic institutional investors
as well as retail investors were sellers.
Sony Corp rose 1.0 percent and Nissan Motor Co
added 1.9 percent.
In the financial sector, Mitsubishi UFJ Financial Group
gained 2.5 percent, while Mizuho Financial Group
gained 0.9 percent.
"As the fiscal year-end nears, domestic investors sell to
adjust their positions; they will likely move to the sidelines
soon and they won't invest aggressively until new funds are
allocated in April... but hot money is pouring into the Japanese
market as foreign investors are buying," said Norihiro Fujito,
senior investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
On Wednesday, ahead of the market open, foreigners were net
buyers of Japanese stocks for the sixth straight day.
The Nikkei has gained 19 percent this year and 6.6 percent
this month, as the likely higher overseas income for exporters
on the back of the weakening yen and hopes for more monetary
easing encouraged investors to back equities.
The yen hit a fresh 3-1/2 year low of 96.71 on Tuesday on
hopes that the Bank of Japan might deliver expected monetary
stimulus sooner rather than later.
Japan's main opposition Democratic Party decided on Tuesday
to back the government's nominee for the Bank of Japan governor,
a lawmaker said, making it certain Haruhiko Kuroda will land the
top job at the central bank later this month.