Nikkei up 0.5 pct, driven by autos; gains limited

* Nikkei up 0.5 pct, resistance strengthening near 10,000

* Carmakers gain after brokerage report, Fuji Heavy climbs

* Gains centre on short-covering, techs strong

By Elaine Lies

TOKYO, Nov 12 (Reuters) - Japan's Nikkei stock average edged up 0.5 percent on Thursday, buoyed by gains on Wall Street on the view that the global economic recovery is looking a little more certain, with carmakers up after a positive brokerage report. FamilyMart Co (8028.T), Japan's third-largest convenience store operator, gained nearly 3 percent after a source familiar with the matter said the company was in talks to buy smaller rival am/pm Japan Co. [ID:nBNG460546]

The S&P 500 and the Dow both closed at 13-month highs on Wednesday after upbeat data for a top homebuilder, while Chinese factory output came in at a 19-month high, both pointing to a strengthening global economy.

"Even though fears of the U.S. economy dipping again are receding, the biggest boosts are the signs that no stimulus measures will be revoked until a recovery is really confirmed," said Kenichi Hirano at Tachibana Securities.

"Japan's shares should be reflecting this more, but foreign investors' views of the country appear to be changing so that it's now just one country among others in Asia. And if you think that way, you might as well buy something like Vietnamese shares, because they'll grow."

The benchmark Nikkei .N225 rose 45.70 points to 9,917.38, while the broader Topix , which is not as tech-heavy, was flat at 872.40.

The Nikkei has recently been hit by falling trading volume, with the market lacking the energy to punch above resistance at 10,000 -- just about where the Nikkei's 25-day moving average comes in -- without fresh trading factors.

Equity index provider MSCI .MXB.N announced changes on Wednesday to its Global Standard Indices as part of its semi-annual review. Chiyoda Corp (6366.T), a plant engineering firm, and Koito Manufacturing Co (7276.T), which makes automative lighting equipment, both climbed after they were included in the MSCI Japan Index, rising 4.4 percent and 5.8 percent respectively.

CARMAKERS POWER HIGHER

Carmakers rose after Goldman Sachs raised ratings on Fuji Heavy Industries (7270.T), maker of Subaru cars, to "buy" from "neutral" and added Honda Motor Co (7267.T), already rated "buy", to its Conviction List, citing larger-than-expected guidance hikes with first-half results based on cost cuts and improved production volume.

Analyst Kota Yuzawa said he was most bullish on Honda "on its earnings power as it implements cost cuts ahead of peers." He said that Fuji Heavy was upgraded due to earnings improvements fueled by the U.S. market. He added that he was removing Toyota Motor Corp (7203.T) from the Conviction List since anticipated positive catalysts all appear to have been played out in the first half results.

Fuji Heavy gained 6.7 percent to 365 yen. Honda rose 1.9 percent to 2,915 yen and Nissan Motor (7201.T) gained 1.4 percent to 662 yen. Toyota rose 2.3 percent to 3,520 yen. Tech shares rose broadly after slides on Wednesday, with Tokyo Electron (8035.T) up 2.1 percent to 4,980 yen and Advantest Corp (6857.T), a maker of chip-testing devices, rising 0.5 percent to 1,985 yen.

Shipping firm Nippon Yusen (9101.T) fell 2.8 percent to 318 yen after the Nikkei business daily said it would likely raise about 150 billion yen in its first public share offering in 40 years. [ID:nT369500]