Nikkei rises 0.5 pct, exporters up as dlr picks up

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By Taiga Uranaka

TOKYO, March 14 (Reuters) - Japan's Nikkei share average climbed 0.5 percent on Friday as exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) tracked gains on Wall Street, helped also by the dollar picking up a little after slumping against the yen a day earlier.

Oil and gas field developer Inpex Holdings Inc (1605.T: Quote, Profile, Research, Stock Buzz) marched higher after oil hit a record $111 on Thursday.

But investors remained cautious after the Nikkei dropped to a 2-½ year closing low the previous day.

"It's a rough market and a wait-and-see mood is prevailing. You are very likely to get burnt if you dip in," said Harushige Kobayashi, head of research at Maruwa Securities.

The benchmark Nikkei .N225 ended the morning session up 64.19 points at 12,497.63.

Financials were mixed, with Japan's biggest bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) falling, dragging on the broader TOPIX index which edged 0.4 percent lower to 1,211.14.

Market participants said global credit market woes are unlikely to end unless the U.S. government decides to inject public money to bolster financial institutions.