Japan stocks inch up, weak yen helps offset Fed disappointment

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By Shinichi Saoshiro

TOKYO, Aug 1 (Reuters) - Japan's Nikkei share average recouped early losses and inched up 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 was up 0.07% at 21,536.54 points as of 0151GMT.

The index initially fell as much as 1% but clawed back ground as the yen slid to a two-month low against the dollar after the Fed proved to be less dovish than anticipated.

Shares of exporters, which benefit from a weaker yen, advanced. Toyota Motor Corp rose 1.3%, Honda Motor Co edged up 0.9%, Canon Inc added 1% and Nintendo advanced 3.8%.

Nomura Holdings soared 8.5% the investment bank said its first-quarter profit soared more than ten-fold after restructuring its portfolio.

Another blue chip which made big gains was Takeda Pharmaceutical, which gained 5.8% after its sales in the April-June quarter increased 88.8%.

Kao Corporation, on the other hand, fell 3.5% after the cosmetic product maker saw its January-June net profit decline 8.8%.

The broader Topix rose 0.15% to 1,567.45. (Editing by Kim Coghill)