Nikkei up led by Toyota, other exporters on dollar

(Updates to midmorning)

TOKYO, Feb 19 (Reuters) - Japan's Nikkei average rose on Tuesday, led by exporters such as Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) on a firm dollar.

Trading houses Mitsui & Co (8031.T: Quote, Profile, Research, Stock Buzz) and Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz) rose after steel makers agreed to a 65 percent jump in iron ore prices.

Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) and rivals extended gains as investors were relieved that one of the negative factors pressuring shares had now played out.

"The move could be both good and bad for steelmakers, but they have been able to absorb increased costs in the past and have valid reasons to pass it on to prices," said Takashi Ushio, head of investment strategy at Marusan Securities.

As of 0055 GMT the benchmark Nikkei .N225 was up 0.8 percent at 13,737.05 and the broader TOPIX index was up 0.8 percent at 1,343.54.

Toyota rose 2.6 percent to 6,360 yen and Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) climbed 2.4 percent to 3,370 yen.

Mitsui gained 2.4 percent to 2,340 yen and Mitsubishi rose 2.2 percent 3,220 yen. Japan's major trading houses have stakes in overseas mines including iron ore and coal.

Komatsu Ltd (6301.T: Quote, Profile, Research, Stock Buzz), the world's second-biggest maker of earth-moving equipment, rose 2.1 percent to 2,710 yen after it said it would raise prices of construction machinery in Japan by 8-10 percent from March, due to higher steel and other material prices.