TOKYO, Sept 16 (Reuters) - Japan's Nikkei average rose 0.5 percent as Canon Inc and other exporters gained, bolstered by optimism about the U.S. economy after strong retail sales data and a halt in the yen's rise against the dollar.
But gains were pared by nervous investors, who were waiting to see the policies of Japan's new government after Yukio Hatoyama was voted in as prime minister and prepared to announce his cabinet after a resounding Aug. 30 election win.
The benchmark Nikkei rose 53.15 points to 10,270.77, though the broader Topix fell 0.1 percent to 931.43, dragged lower by bank shares. (Reporting by Elaine Lies)