Nikkei edges up as China hopes give boost

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

* China-linked shares climb on data hopes

* Dollar's rise against yen helps some exporters

* But 25-day MA near 10,000 becoming resistance - analyst

By Elaine Lies TOKYO, Nov 9 (Reuters) - Japan's Nikkei average shrugged off weak U.S. jobs data to rise 0.2 percent on Monday, with China-linked shares such as Kubota Corp (6326.T) up on hopes 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 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]

"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."

But other analysts said a negative conclusion about the jobs data was unavoidable. "Having the unemployment rate up over 10 percent is pretty tough, and it inevitably raises concerns about consumer spending," said Noritsugu Hirakawa, a strategist at Okasan Securities.

The benchmark Nikkei .N225, which began the day in negative territory, edged up 19.64 points to 9,808.99. The broader Topix , which is less tech-centred, fell 0.4 percent to 870.67.

Okasan's Hirakawa said resistance for the Nikkei appears to be developing around the level where the 25-day moving average comes in, currently just above 10,000, and the Nikkei is unlikely to break through this without strong fresh factors. On the other hand, the Topix appears to have found technical support as it approached lows touched in October and July after hitting a low of 866.12, said Hiroaki Osakabe, a fund manager at Chibagin Asset Management. The 200-day moving average for the Topix is 869.

OVERSELLING?

Some analysts said 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 earnings results with many being revised upward," said Masaru Hamasaki, a senior strategist at Toyota Asset Management.

But at the same time a rash of uncertainties, including worries about Japanese companies having to raise capital through share issuance and the dollar's moves against the yen, will prevent much active buying of Japanese stocks, analysts said.

Kubota, which makes agricultural equipment including tractors, surged 8 percent to 766 yen on hopes that China's economy will continue to post good growth in data out later this week.

Hitachi Construction (6305.T) gained 2.7 percent to 2,300 yen and Komatsu (6301.T), the world's No.2 maker of earth-moving equipment, rose 1.9 percent to 1,854 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 7.8 percent to 526 yen after the maker of watches and electronics parts raised its full-year operating profit forecast by 83 percent, citing cost-cutting efforts. Nomura raised its rating on the company to "buy" from "neutral".

Mitsui Sumitomo Group Holdings Inc (8725.T) jumped 8.6 percent to 2,275 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 3.2 percent to 3,060 yen while No. 2 bank Mizuho Financial Group (8411.T) fell 1.7 percent to 176 yen.

Rohm Co Ltd (6963.OS) tumbled 5.3 percent to 5,950 yen after the specialty chipmaker revised its profit forecast downwards.

The company said it had revised its annual group operating profit forecast to 16 billion yen ($177.7 million) for the financial year ending in March from 22 billion yen.

Trade was thin, with 1.6 billion shares changing hands on the Tokyo exchange's first section compared to last week's daily average of 1.8 billion.

Declining shares outnumbered advancing ones by over 2 to 1. (Additional reporting by Chikafumi Hodo; Editing by Michael Watson)