Nikkei rises 2 pct, shippers up on China econ hopes

* Nikkei up 2 percent, highest close in more than a week

* Hopes for China economy after rate cut spur buying

* Panasonic down on prospects forecast will be slashed

* Yen edges up against dollar, limiting gains (Adds stocks, details)

By Elaine Lies

TOKYO, Nov 27 (Reuters) - Japan's Nikkei share average rose 2 percent on Thursday to its highest close in more than a week as hopes that a Chinese interest rate cut would help China's economy bolstered shippers, steel and construction machinery makers such as Komatsu Ltd (6301.T: Quote, Profile, Research, Stock Buzz). High tech shares such as Kyocera Corp (6971.T: Quote, Profile, Research, Stock Buzz) climbed in the wake of gains by their U.S. peers, though Panasonic Corp (6752.T: Quote, Profile, Research, Stock Buzz) bucked the trend by falling more than 4 percent after a source said it would slash its profit forecast, which it did after the close. [ID:nT143597]

Additional upward impetus came from trading firms and other commodities-linked shares, partly on hopes for China and partly on oil prices, which rose more than 7 percent on Wednesday [O/R]. But the yen's rise against the dollar was paring gains for exporters, keeping the market weighted.

The benchmark Nikkei .N225 gained 160.17 points to 8,373.39 in extremely thin trade, with many investors sidelined. The broader Topix .TOPX gained 1.5 percent to 829.03. Trade was very thin with U.S. markets closed on Thursday for the Thanksgiving holiday, and market players said the gains on China expectations were likely to be brief at best.

"When China announced its recent economic package, construction machinery, steel and shippers all gained, just the way they have now," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

"As to whether the rate cut has avoided the worst for China's economy -- well, at least it is better than nothing." On Wednesday, China cut interest rates by the biggest margin in 11 years, and the European Union plotted a 200 billion euro ($257.6 billion) stimulus plan as central banks and governments acted to jolt the world out of a deepening slowdown. [ID:nN26340386]

Others said investors were waiting to see if U.S. shoppers flock to stores on Friday, traditionally the start of the Christmas shopping season, or if they are tightening their purse strings this year as the economy worsens. More gloomy U.S. data was released on Wednesday, including government reports that showed orders for costly manufactured goods such as refrigerators and washing machines, known as durable goods, plummeted in October, while consumers cut spending at the steepest rate in more than seven years. [ID:nN26338126]

"The boost from the China rate cut is unlikely to continue, since the market's real attention is on the United States," said Katsuhiko Kodama, senior strategist at Toyo Securities.

"People remain cautious since we need to watch the Christmas sales season this year."

PANASONIC POUNDED, SHIPPERS STRONG

Market players said they detected no immediate impact from attacks by gunmen in Mumbai in which at least 100 people were killed, noting that shares in firms with strong links to the India market such as Suzuki Motor Corp (7269.T: Quote, Profile, Research, Stock Buzz) were up.

Panasonic fell 4.7 percent to 1,284 yen after a source familiar with the matter said it was likely to cut its annual operating profit forecast by 30 percent or more as a slowing economy depressed sales of flat TVs and other electronics products.

After the close, Panasonic cut its forecast a deeper 39 percent, hit by a slowing economy and a firmer yen, below market expectations.

Mitsui O.S.K. Lines (9104.T: Quote, Profile, Research, Stock Buzz) and other shipping companies rose, with bargain-hunting by investors eager to snap up shares in the beaten-down sector joining expectations for China to provide a boost.

Mitsui O.S.K. jumped 7.4 percent to 478 yen, while Nippon Yusen (9101.T: Quote, Profile, Research, Stock Buzz), Japan's largest shipping firm, rose 6.5 percent to 491 yen. Kawasaki Kisen (9107.T: Quote, Profile, Research, Stock Buzz) rose 5.2 percent to 365 yen.

Oil and gas field developer Inpex (1605.T: Quote, Profile, Research, Stock Buzz) climbed after oil surged on Wednesday and remained strong even though crude prices fell back a bit, rising 10 percent to 573,000 yen.

Trading houses were bolstered by oil as well, with Mitsui & Co (8031.T: Quote, Profile, Research, Stock Buzz) gaining 7.7 percent to 781 yen and Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz), Japan's largest trading house, rising 5.7 percent to 1,115 yen. Marubeni Corp (8002.T: Quote, Profile, Research, Stock Buzz) climbed 6.5 percent to 310 yen.

Kyocera gained 2.8 percent to 5,080 yen and TDK Corp (6762.T: Quote, Profile, Research, Stock Buzz) rose 3.9 percent to 3,090 yen after their U.S. peers gained.

Trade was thin, with 1.58 billion shares changing hands on the Tokyo exchange's first section compared to last week's daily average of 2.1 billion.

Advancing shares outnumbered decliners by nearly 2 to 1. (Reporting by Elaine Lies; Editing by Hugh Lawson)