Nikkei edges up 0.3 percent, Elpida Memory rises
* Elpida rises, sources say it plans to seek govt funds
* Banking shares trim some of week's losses
* GS Yuasa slides, pulls back from week's highs
TOKYO, June 19 (Reuters) - Japan's Nikkei average rose 0.3 percent on Friday after reassuring U.S. jobs and manufacturing data boosted hopes for a global economic recovery, with investors picking up shares such as Canon Inc (7751.T) that fell earlier in the week.
Elpida Memory Inc (6665.T) rose 3.7 percent after three sources familiar with the matter said the chip maker plans to apply for tens of billions of yen in government funds this month to shore up its depleted capital. [ID:nT79113]
Shippers such as Mitsui O.S.K. Lines (9104.T) rose after Morgan Stanley stated a positive outlook on the sector over the longer term and lifted its ratings for Mitsui O.S.K. and Kawasaki Kisen (9107.T).
Tokyo shares seem likely to face profit-taking in the near term, said Masayoshi Okamoto, head of dealing at Jujiya Securities.
"This is probably not a full-scale pullback, but it is hard to say how long it will continue and what form it will take," Okamoto said.
The Nikkei stock average .N225 rose 29.41 points to 9,733.13 and the broader Topix edged up 0.4 percent to 914.70.
The benchmark Nikkei index is still down about 4 percent on the week, having retreated from an eight-month closing high of 10,135.82 hit last Friday.
"The 10,000 level is a gain of roughly 30 percent from the start of April. Anyone would sell if they have a 30 percent profit," Okamoto said.
The Nikkei hit an eight-month intraday high just below 10,200 last week, up 26 percent from its April 1 intraday low just under 8,100.
TRENDLINES BROKEN
Tokyo shares have faced profit-taking after their three-month rally partly because investors are reluctant to chase share prices higher amid worries that the outlook for capital spending and personal consumption remains cloudy.
While the Nikkei could rise above 10,000 again if investor confidence improves, recent market conditions point to some weakness, said Hiroaki Osakabe, a fund manager for Chibagin Asset Management.
"Many large-cap stocks have broken below their trendlines," he said, adding that Shin-Etsu Chemical (4063.T) and Honda Motor Co (7267.T) were among shares showing such signs of weakness.
Among gainers on Friday, banking .IBNKS.T and electrical machinery shares .IELEC.T rose, trimming a bit of their losses on the week, with Canon rising 3.6 percent to 3,210 yen and Sumitomo Mitsui Financial Group (8316.T) up 2.3 percent at 4,010 yen.
Shipping firm Mitsui O.S.K. rose 1.1 percent to 648 yen and Kawasaki Kisen climbed 2.9 percent to 425 yen.
Among losers were car battery maker GS Yuasa Corp (6674.T), which slid 14.1 percent to 972 yen. GS Yuasa, one of the most actively traded Nikkei 225 stocks this year, had climbed as high as 1,228 yen this week, its share price having tripled from a March trough of 376 yen.
Shares of car battery makers such as GS Yuasa have gained in popularity in recent months as investors flocked to companies seen strong in eco-friendly technology.
The Dow and S&P 500 rose on Thursday, supported by data showing that the number of people staying on jobless benefits fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic region contracted much less than expected in June. [ID:nN18379372] But some caution is in order, given that the New York Fed manufacturing data earlier in the week had been weak, Osakabe said. Regarding the outlook for U.S. employment conditions, one point to watch is the possible impact from General Motors Corp's GMGMQ.PK filing for Chapter 11 bankruptcy earlier in June, he said.
Declining shares outnumbered advancing ones 924 to 615.
Trade fell off slightly, with 1.3 billion shares changing hands on the Tokyo exchange's first section compared to last week's morning average of 1.5 billion. (Editing by Edwina Gibbs)
