* Nikkei edges up but rises stalled by economic worries * Sanyo Electric surges on hopes for batteries
By Masayuki Kitano
TOKYO, June 17 (Reuters) - Japan's Nikkei stock average edged up 0.9 percent on Wednesday, with Sanyo Electric surging after saying it had secured buyers for its batteries used in hybrid cars.
KK DaVinci Holdings climbed 5.9 percent to 21,700 yen after sources said Daiwa Securities Group Inc would buy all shares of REIT asset manager DaVinci Select from DaVinci Holdings.
After the market close, Daiwa Securities announced that it would buy the DaVinci Select shares for 3.4 billion yen.
The Nikkei regained some ground after marking its worst percentage slide since late March the previous day, but its gains were capped after mixed indicators underscored doubts about how fast the U.S. recession is easing.
"In wake of the rise to 10,000, there were lots of people who were waiting for the next dip," said Tomomi Yamashita, fund manager for Shinkin Asset Management Co Ltd, referring to bargain-hunting interest among investors.
The Nikkei rose 87.97 points to 9,840.85, while the broader Topix rose 0.9 percent to 923.02.
The rise helped the Nikkei make up some ground after sliding 2.9 percent on Tuesday, when it underperformed the MSCI broad measure of Asian stocks outside Japan, which fell just 1.1 percent.
That disparity shrank on Wednesday as the Nikkei rose even as the MSCI's Asian shares index fell again, bringing its losses over the last two days to 1.9 percent, roughly in line with the Nikkei's fall over the same span.
SOME SHARES SHINE
Sanyo's shares jumped 14.3 percent to 279 yen, outpacing a 1.7 percent gain in the electrical machinery subindex. Sanyo was the second-most active share by volume on the Tokyo exchange's first section.
Sanyo said on Tuesday that car makers in the United States, Japan and Europe have agreed to buy its auto-use lithium-ion batteries, as it looks to take advantage of growing demand for hybrid cars.
"I cannot name names, but we are working with multiple companies that represent big enough demand to fill the production lines at the new plants," Sanyo Executive Vice President Mitsuru Homma told Reuters in an interview on Tuesday.
Car battery maker GS Yuasa Corp, a rival of Sanyo's in auto-use rechargeable batteries, jumped 12.5 percent to 1,180 yen, and was the third-most active issue by volume after Sanyo.
Yamashita at Shinkin Asset Management said the jump in shares of Sanyo and GS Yuasa may be a sign that investors are flocking to individual brands that have specific themes amid uncertainty about the economic outlook.
During the global slump in demand for cars, fuel-sipping hybrid cars have become a bright spot for the industry, with Honda Motor Co Ltd and Toyota Motor Corp seeing robust demand for their latest models.
Demand for eco-friendly cars has also been supported by new Japanese government tax incentives for low-emission cars that were introduced in April.
Trade was active, with 2.5 billion shares changing hands on the Tokyo exchange's first section, equal with last week's daily average.
Advancers outpaced decliners by more than 3 to 1. (Additional reporting by Elaine Lies; Editing by Hugh Lawson)