Nikkei up 0.6 pct, worries eased by U.S. move

(Updates to midmorning)

TOKYO, July 14 (Reuters) - Japan's Nikkei average rose 0.6 percent on Monday, led by banks as investors showed their relief after the U.S. government unveiled 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].

Banks shares including Japan's top lender Mitsubishi UFJ Financial Group (8306.T) rose sharply after the U.S. Treasury and Federal Reserve unveiled sweeping steps to support Fannie Mae (FNM.N) and Freddie Mac (FRE.N) if needed to bolster confidence in the troubled mortgage financing giants. [ID:nN13387357]

But market strategists said the move was likely to be a temporary boost to 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 emergency move 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.

As of 0050 GMT, the benchmark Nikkei .N225 was up 81.75 points at 13,121.44.

The broader Topix gained 0.8 percent to 1,295.81.

"Technials suggest Japanese shares have been oversold, and the market's move today is in line with a rebound, which had been expected in the short term," said Katsuhiko Kodama, senior strategist at Toyo Securities.

Still, many investors are seen taking a wait-and-see stance, as a number of U.S. companies are set to announce quarterly earnings this week, including major financial institutions such as Citigroup (C.N) and Merrill Lynch MER.N.

Also on the macroeconomic front, the U.S. consumer price index and other important data are due this week.

Nisshinbo jumped to 1,364 yen, the biggest percentage gainer on the Nikkei. Chip-manufacturing equipment maker Tokyo Electron Ltd (8035.T) rose 3.2 percent to 6,100 yen, the biggest contributor to the index.

Mitsubishi UFJ climbed 1.1 percent to 1,003 yen and No. 2 Mizuho Financial Group (8411.T) gained 2.6 percent to 549,000 yen. (Reporting by Taiga Uranaka; editing by Sophie Hardach)