Japan's Nikkei rises on optimism for corporate outlook

TOKYO, Nov 14 (Reuters) - Japan's Nikkei share average rose on Tuesday amid expectations that domestic firms would continue posting solid outlook, with the yen hovering near a three-decade low against the dollar.

The Nikkei had risen 0.53% to 32,757.44 by the midday break, while the broader Topix was up 0.5% to 2,348.38.

"Japanese corporate earnings season has passed its peak and investors confirmed many companies raised their outlook," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

"And with the yen hovering close to 152 against the dollar, there is an expectation that Japanese firms would raise their profit outlook further."

A softer yen tends to help exporters as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.

Mizuho Financial Group rose 2.48% after revising up its profit forecast for the full year due to a weaker yen and rosier outlook for the economy.

The banking index rose 1.17%. Mitsubishi UFJ Financial Group rose 2% and Sumitomo Mitsui Financial Group gained 0.7%.

Investors are also awaiting a crucial inflation reading that could provide clues as to how long the U.S. Federal Reserve will keep interest rates elevated.

"The rise in today's market already factored in downtrend of the U.S. interest rates," said Shuji Hosoi, senior strategist at Daiwa Securities.

"Gains in U.S. futures indicated that as well," said Hosoi.

Among other individual stocks, Benesse Holdings jumped 10.56% after surging 23.06% to a daily limit high in the previous session.

The education company said on Friday it would go private in a 208 billion yen ($1.37 billion) management buyout that will include Swedish investment fund EQT AB as a partner. Hakuhodo DY Holdings tanked 9.13% after a group of three advertising companies posted a half-year loss and lowered annual profit forecast.

($1 = 151.7200 yen) (Reporting by Junko Fujita; Editing by Rashmi Aich)