Japan stocks edge up, weaker yen offsets Fed disappointment

* Nikkei rises 0.09%, Topix adds 0.14%
* Stocks recoup earlier losses as yen weakens to 2-mth low

By Shinichi Saoshiro
TOKYO, Aug 1 (Reuters) - Japan's Nikkei share average
recouped early losses and ended marginally higher on Thursday,
supported by a weaker yen which helped offset disappointment
that the U.S. Federal Reserve is not embarking on a lengthy
easing cycle.
The Fed on Wednesday lowered rates for the first time since
2008, as widely expected, but Chairman Jerome Powell said the
move was not the start of a long series of rate cuts, sending
U.S. share markets lower. The Nikkei .N225 ended the day up 0.09% at 21,540.99
points.
The index initially fell as much as 1% but clawed back
ground as the yen JPY= slid to a two-month low against the
dollar after the Fed proved less dovish than anticipated.
"Prior to the FOMC (Federal Open Market Committee) meeting,
the chief concern was that while a rate cut was expected to be
good for equities, it could also end up strengthening the yen by
weakening the dollar," said Takashi Hiroki, chief strategist at
Monex Securities.
"But Powell's views doused strong yen concerns, and that has
been supportive for Japanese stocks."
Shares of exporters, which benefit from a weaker yen,
advanced. Toyota Motor Corp 7203.T rose 1%, Honda Motor Co
7267.T edged up 0.4%, Canon Inc 7751.T added 0.9% and
Nintendo 7974.T advanced 3.3%.
Nomura Holdings 8604.T rallied 9% as the investment bank
said its first-quarter profit soared more than ten-fold after
restructuring its portfolio. Other financial shares also rose with Daiwa Securities Group
8601.T climbing 2.5% and Shinsei Bank 8303.T advancing 3.8%.
Takeda Pharmaceutical 4502.T gained 7.4% after its sales
in the April-June quarter increased 88.8%. Kao Corporation 4452.T , on the other hand, fell 3.4% after
the cosmetic product maker saw its January-June net profit
decline 8.8%. The broader Topix .TOPX rose 0.14% to 1,567.35.
Of Tokyo's 33 subindexes, 13 were in positive territory, led
by securities .ISECU.T .

(Editing by Kim Coghill)