RPT-Nikkei edges up; yen helps it shrug off US jobs data

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* In thin trade, Nikkei shrugs off weak U.S. jobs data

* China-linked shares climb on data hopes

* Exporters turn positive as yen falls back

By Elaine Lies

TOKYO, Nov 9 (Reuters) - Japan's Nikkei stock average shrugged off weak U.S. jobs data to rise 0.5 percent on Monday, with an advance in the dollar against the yen helping to pull exporters like Honda Motor Co (7267.T) out of negative territory.

Investors have started searching for fresh factors as Japan's earnings season winds down and China-linked shares such as Hitachi Construction (6305.T) gained on anticipation that Chinese economic indicators due later this week will be good.

But gains were limited by losses in banks such as Sumitomo Mitsui Financial Group (8316.T) after Britain pressed the G20 to come up with a plan to make banks pay for any future bailouts. [ID:nL7165900]

The benchmark Nikkei .N225, which began the day lower, edged up 44.94 points to 9,834.29. The broader Topix pared losses to be down 0.1 percent at 873.51.

"It appears that there's a bit of a movement back towards risk-taking," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

"The jobs data wasn't all that good. Usually if numbers are worse than expected markets aren't too happy, but the downward revision in terms of jobs lost in August and September shows the situation there is improving."

The U.S. jobless rate unexpectedly jumped to 10.2 percent in October, a 26-½ year high, but job losses for August and September were revised to show 91,000 fewer jobs were lost than previously reported. [ID:nN06178752]

Some analysts said they believed Japanese shares had been oversold and it was now time for the benchmark to catch up with overseas markets.

"Falls in shares are limited because there is no reason to sell Japanese shares further after seeing healthy corporate earning results with many being revised upward," said Masaru Hamasaki, a senior strategist at Toyota Asset Management. Hitachi Construction rose 2.9 percent to 2,305 yen and Komatsu (6301.T), the world's no. 2 maker of earth-moving equipment, gained 1.7 percent to 1,849 yen. Kubota Corp (6326.T), a maker of agricultural equipment including tractors, surged 8.3 percent to 768 yen. "Given that the market is currently out of strong factors as Japan's earnings season comes to a close, investors are now returning to old themes, such as expectations for Chinese economic growth," said Masayoshi Okamoto, head of dealing at Jujiya Securities.

Citizen Holdings (7762.T) soared 8.6 percent to 530 yen after the maker of watches and electronics parts raised its full-year operating profit forecast by 83 percent, citing cost-cutting efforts.

Mitsui Sumitomo Group Holdings Inc (8725.T) jumped 8.8 percent to 2,280 yen after the insurer said it would handily beat its earlier profit forecasts, helped by lower-than-expected costs from typhoons and other natural calamities.

But bank shares weighed.

Sumitomo Mitsui Financial Group lost 2.2 percent to 3,090 yen while No. 2 bank Mizuho Financial Group (8411.T) fell 1.1 percent to 177 yen.

Among exporters, Honda rose 1.6 percent to 2,845 yen and Sony Corp (6758.T) rose 0.4 percent to 2,600 yen. (Additional reporting by Chikafumi Hodo; Editing by Edwina Gibbs)