Nikkei rises 0.4 pct in choppy trade, exporters up

* Nikkei hits 4-mth low at one stage, short-covering buoys

* Reassuring that Nikkei holds above 200-day MA -analyst

* JAL gains ground but property stocks down

* Political uncertainty, equity financings weigh -analyst

By Aiko Hayashi

TOKYO, Nov 25 - Japan's Nikkei average dipped in and out of negative territory on Wednesday but managed to end 0.4 percent higher as exporters were bought back after a crucial support line for the benchmark held.

Persistent concerns about more potential equity financing from Japanese firms, a rising yen against the dollar and uncertainty about government policy kept the Nikkei under pressure.

Daikyo Inc <8840.T> and shares of other apartment developers as well as some creditors sank after unlisted Anabuki Construction went under in Japan's fifth-biggest corporate failure this year.

The benchmark Nikkei hit its lowest level in four months at one stage but did not break below its 200-day moving average at around 9,350.

"Investors were encouraged because the Nikkei didn't go below the 200-day moving average, which many of them were closely watching," said Takahiko Murai, general manager of equities at Nozomi Securities.

"But it's not as if new funds were flowing in. Gains were due to short-covering and the market is still facing downward pressure."

In moderate trade, the benchmark Nikkei <.N225> gained 40.06 points to 9,441.64 after earlier falling as low as 9,366.33, its lowest level since mid-July.

The broader Topix <.TOPX> added 0.5 percent to 833.29.

"Some investors are buying, expecting a rebound after recent declines in the market, but the market tends to quickly flatten or weaken slightly, a pattern we've seen in the past few weeks," said Mitsuo Shimizu, deputy general manager at Cosmo Securities.

"We can't now overlook Japan-specific factors. We have poor supply and demand conditions due to a wave of equity financing and growing scepticism about government policies going forward. There's also a strong yen."

Shares of banks were under pressure on persistent fears they will have to tap the market after Mitsubishi UFJ Financial Group <8306.T>, Japan's largest bank, last week announced it would raise up to $11.2 billion through a new share issue.

MUFG dipped 0.7 percent to 455 yen.

EXPORTERS UP

Exporters rose, helped by short-covering and after data showing Japan's exports grew in October thanks to robust shipments to Asia. [ID:nECONJP] [ID:nT207705]

Sony Corp <6758.T> gained 2.1 percent to 2,415 yen and Kyocera Corp <6971.T> added 1.6 percent to 7,060 yen. Among automakers, Toyota Motor <7203.T> climbed 1.2 percent to 3,420 yen and Honda Motor Co <7267.T> advanced 2.6 percent to 2,795 yen.

Japan Airlines Corp <9205.T> rose 3.5 percent to 90 yen a day after its shares fell to a record low on growing investor worries that Asia's largest airline by revenue could face bankruptcy as it struggles to win an agreement on pension cuts. [ID:nSP480329]

"The JAL issue is basically very similar to that of GM, but the talk is that it won't be allowed to fail," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

Among other notable stocks, Kawasaki Heavy Industries Ltd <7012.T> shot up 4 percent to 210 yen after Citigroup Global Markets hiked its rating on the firm to "buy/high risk" from "hold/high risk," citing prospects for strong profit growth in the business year starting next April.

But shares of Daikyo dropped 2.9 percent to 168 yen, while Takara Leben <8897.T> lost 4.8 percent to 491 yen.

Tokushima Bank <8561.T>, which said it had about 2.6 billion yen worth of unsecured loans and other claims to Anabuki, plunged 7.9 percent to 270 yen.

Anabuki, which failed with debt totalling about 140 billion yen, said it was hurt by slow apartment sales as well as higher land and construction prices, underscoring severe conditions in the country's real estate market.

Some 1.9 billion shares changed hands on the Tokyo exchange's first section, slightly below last week's daily average of 2.1 billion.

Advancing shares outnumbered declining ones, 847 to 709. ((aiko.hayashi@thomsonreuters.com; Reuters Messaging: aiko.hayashi.reuters.com@reuters.net; +81 3 6441 1802)) ((If you have a query or comment on this story send an email to news.feedback.asia@thomsonreuters.com)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com))