Nikkei up 2.3 pct; banks rise after JPMorgan results

(Updates to midmorning)

TOKYO, April 17 (Reuters) - Japan's Nikkei stock average rose 2.3 percent on Thursday, boosted by exporters such as Canon Inc (7751.T) after solid earnings from JPMorgan Chase & Co (JPM.N) and other U.S. blue chips reassured investors about corporate profitability amid a weak economy.

Top lender Mitsubishi UFJ Financial Group (8306.T) and other banks climbed after solid results from JPMorgan and Wells Fargo & Co (WFC.N) heartened investors who had been counting on the big banks to fare better than rivals in coping with the turmoil in the housing and credit markets. [ID:nN16378871]

"Earnings at U.S. companies have generally been better than expected, though worries about Citigroup's earnings remain," said Yoku Ihara, manager of the investment information department at Retela Crea Securities.

The benchmark Nikkei average .N225 added 304.59 points to 13,450.72 as of 0117 GMT after ending up 1.2 percent on Wednesday.

"The market has largely factored in expected bad earnings from Japanese companies, though, as you can see from Toyota," Ihara said.

Toyota Motor Corp (7203.T) advanced 3.3 percent to 5,040 yen even after the Nikkei business daily said Japan's largest automaker was likely to post a 20 percent fall in operating profit for the business year to March 2009 on slower U.S. sales and a stronger yen.

The broader TOPIX index climbed 2.3 percent to 1,300.90.

Mitsubishi UFJ rose 4 percent to 1,017 yen and No.2 Mizuho Financial Group (8411.T) added 5.4 percent to 468,000 yen. Sumitomo Mitsui Financial Group (8316.T), the third-biggest bank, gained 4.6 percent to 770,000 yen.

JPMorgan Chase & Co (JPM.N) said on Wednesday quarterly profit fell 50 percent, but the third-largest U.S. bank was able to skirt the massive losses that have crippled many rivals, and its shares rose as much as 5 percent.

Japan's technology shares rose, with Canon up 5.5 percent at 4,970 yen and Sony Corp (6758.T) gaining 2.9 percent to 4,310 yen.

On the other hand, Aeon Co Ltd (8267.T) fell 4.1 percent to 1,252 yen after shares in its U.S. apparel unit Talbots Inc (TLB.N) plunged as much as 33 percent following Talbots' disclosure that two major banks would no longer make letters of credit available to the company. [ID:nN16410791] (Reporting by Aiko Hayashi; Editing by Hugh Lawson)