Trade was moderate with 2

Trade was moderate, with 2.1 billion shares changing hands onthe Tokyo exchange's first section compared with last week'sdaily average of 2.2 billion. Advancing shares outnumbered declining shares by 1,255 to336. Elpida, the world's fourth-biggest DRAM maker, became thefirst company to get government aid under a new scheme that makespublic funds available to businesses hit by the global financialcrisis, a move the government said was aimed at helping it boostoutput capacity and cutting costs. The benchmark Nikkei .N225 ended up 174.97 points at9,958.44, after briefly rising to as high as 10,000.30 and edgingup towards an eight-month intraday high of 10,170.82 hit earlierin June The broader Topixrose 1.6 percent to 929.76. The Bank of Japan's tankan quarterly survey of businesssentiment comes out on Wednesday, and among a slew of U.S.indicators is jobs data due out on Thursday.

The Nikkei may rise above 11,000 towards the end of the yearonce investors begin focusing on prospects for a recovery in theeconomy and corporate earnings next year, he added. Unless the economy and corporate earnings were to strengtheneven more than expected, it may be hard for the Nikkei to riseabove 10,000 and stay there, Akino said. At 30.5, the 12-month forward price-to-earnings ratio for theMSCI Japan is holding near its highest level in a decade --showing that investors are already expecting a sharp recovery inearnings .MSCIJP. "With the rise to 10,000, the market has factored in arecovery in economic sentiment and corporate earnings to acertain extent," said Mitsushige Akino, chief fund manager atIchiyoshi Investment Management. Elpida Memory Inc (6665.T) rose 1.4 percent after theJapanese government pledged to prop up the loss-making chip makerwith up to $1.7 billion in public and private capital and loans.[ID::nT51912] Analysts said the market mood continued to brighten as thefirst quarter of Japan's financial year came to an end, butinvestor skittishness is likely to spark selling to lock inprofits on any rises over 10,000 for a while.

The Nikkei briefly hit 10,000 for the first time in two weekson Tuesday, with Fujifilm Holdings Corp (4901.T) surging afterMizuho Securities upgraded its rating on the stock. (Editing by Michael Watson) Stocks Mergers & Acquisitions Funds News ETFs News Private Capital France Japan. * Nikkei up 23 pct in April-June, best qtrly gain since 1995 Stocks  |  Japan * Nikkei briefly touches 10,000 * Elpida rises after government says to invest * Optimism grows ahead of U.S., Japan indicators By Masayuki Kitano TOKYO, June 30 (Reuters) - Japan's Nikkei average rose 1.8percent on Tuesday to finish April-June up 23 percent, its bestquarterly gain since 1995, buoyed by growing hopes that the worstof the global economic slump may be over. Aozora's shares climbed 4.2 percent to 149 yen whileShinsei's stock rose 1.3 percent to 155 yen, outperforming a 0.6percent rise in Tokyo's banking subindex .IBNKS.T.

Japan's government pumped a total of 621 billion yen into thetwo banks and their predecessors and is still owed more than halfof that. The two banks and their American owners have been criticisedfor losing billions of yen on risky investments while still owingmoney to the government. Both Shinsei and Aozora were nationalised following Japan'sbanking crisis a decade ago and later sold to foreigners, whowere criticised by the Japanese media for making massivewindfalls on bad banks. Ratings agency Fitch Ratings said this week that a mergeralone may not improve the banks' business models or immediatelyincrease earnings power. Shinsei focuses on retail banking and consumer finance whileAozora has concentrated on corporate finance and real estate,meaning there may be little room for gaining economies of scale,Fitch said. But analysts have said the two will face a tough slog inJapan, where the domestic loan market is controlled by localpowerhouses such as Mitsubishi UFJ Financial Group (8306.T),Sumitomo Mitsui Financial Group (8316.T) and scores of regionallenders.