Nikkei up 1.1 pct, worries eased by U.S. move

*Nikkei up after U.S. rescue plan for Fannie Mae, Freddie Mac

*Nisshinbo jumps on report of new fuel cell technology

*Caution remains ahead of U.S. financial earnings (Adds comments and stocks)

TOKYO, July 14 (Reuters) - The Nikkei stock average rose 1.1 percent on Monday, led higher by bank stocks on investor relief after the U.S. government unveiled emergency measures to help troubled home financing providers.

Nisshinbo Industries Inc (3105.T) jumped more than 10 percent after a newspaper reported the firm developed a technology to use carbon instead of platinum as the electrode catalyst for fuel cells [ID:nT149917].

Japan's top lender Mitsubishi UFJ Financial Group (8306.T) and other banks rose sharply after the U.S. Treasury and Federal Reserve offered its emergency cash to Fannie Mae (FNM.N) and Freddie Mac (FRE.N) and said it would buy shares in the mortgage financing giants to bolster investor confidence. [ID:nN13387357]

But strategists and fund managers said the move was likely to be only a temporary boost for the market.

"It's a deja vu of Bear Sterns. The market's positive reaction is not likely to last long," said Daisuke Uno, chief strategist at treasury marketing department at Sumitomo Mitsui Banking Corp, referring to the U.S. Federal Reserve's rescue plan in the wake of the near-collapse of the securities firm in March.

"Even if these two companies are saved by these measures, what happens when the next one comes?" he said.

Many investors stayed cautious ahead of quarterly earnings this week by major financial institutions such as Citigroup (C.N) and Merrill Lynch MER.N.

"Investors need to see how much more losses financial institutions will report," said Fumiyuki Nakanishi, group manager of investment information department at SMBC Friend Securities.

The benchmark Nikkei .N225 ended the morning up 146.21 points at 13,185.90. The broader Topix gained 1.3 percent to 1,302.79.

Mitsubishi UFJ climbed 1.7 percent to 1,009 yen and No. 2 Mizuho Financial Group (8411.T) gained 2.4 percent to 548,000 yen.

NISSHINBO JUMPS

Nisshinbo ended the morning up 8 percent at 1,332 yen, the biggest percentage gainer on the Nikkei. Casual clothing retailer Fast Retailing Co Ltd (9983.T) gained 2 percent to 10,430 yen, the biggest contributor to the Nikkei. Steel shares rose sharply, with Japan's No.2 JFE Holdings Inc (5411.T) up 7.5 percent at 5,570 yen. No. 1 Nippon Steel Corp (5401.T) climbed 5.2 percent to 591 yen.

"Even though there have been some bad news like Toyota's production cut, steel shares are bargain," SMBC Friend's Nakanishi said.