Nikkei up 1.6 pct as exporters rise on Wall St, yen

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By Taiga Uranaka

TOKYO, April 21 (Reuters) - Japan's Nikkei stock average rose 1.6 percent on Monday, up for a fifth day as Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) and other exporters climbed on Wall Street's rally and a softer yen.

Financials such as Japan's largest bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) gained on receding pessimism about the credit crisis after investors welcomed Citigroup (C.N: Quote, Profile, Research, Stock Buzz) efforts to resolve billions of dollars in writedowns.

Earth-moving equipment maker Komatsu Ltd (6301.T: Quote, Profile, Research, Stock Buzz) soared after bigger rival Caterpillar (CAT.N: Quote, Profile, Research, Stock Buzz) reported stronger-than-expected profits.

"Investors are breathing a sigh of relief," said Yoku Ihara, a manager of investment information at Retela Crea Securities. "Earnings by Caterpillar and others showed the struggles of financials may not have spread into other businesses."

The benchmark Nikkei average .N225 ended the morning up 221.24 points at 13,697.69. The broader TOPIX index added 1.8 percent to 1,327.55.

U.S. stocks surged on Friday as results from Internet leader Google (GOOG.O: Quote, Profile, Research, Stock Buzz) and Caterpillar showed resilience in the face of a slowing economy, with profits that defied Wall Street's modest expectations.

EXPORTERS UP