* Exporters rise after good U.S. GDP data lifts Wall Street
* Gains may be capped by profit-taking ahead of weekend
* Nintendo falls after profit slide, forecast cut
By Elaine Lies
TOKYO, Oct 30 (Reuters) - Japan's Nikkei stock average rose 1.3 percent on Friday as exporters climbed on data showing the U.S. economy had returned to growth, while Japan Airlines gained after it turned to the government for a bailout.
But Nintendo Co Ltd fell 4.5 percent after it reported a 52 percent slide in quarterly profit and slashed its full-year forecast as the Wii console loses its title as the videogame platform to beat.
U.S. gross domestic product showed the economy expanded at an annual rate of 3.5 percent in the third quarter, the first quarter of growth after more than a year of contraction, sending Wall Street broadly higher. Analysts cheered the gains, but warned the market was ripe for profit-taking ahead of the weekend and that uncertainties remained about the global economy after U.S. home sales data earlier this week had raised doubts about the pace of recovery.
"It's hard to say if things have really changed, and there are a lot of other indicators coming up next week," said Yutaka Miura, senior technical analyst at Mizuho Securities.
"GDP data is relatively old, after all, and doesn't tell us much about more recent growth. So we know the past was good, but there are a lot of uncertainties still about the future."
The benchmark Nikkei rose 124.18 points to 10,015.28 after closing at a three-week low below 10,000 on Thursday, while the broader Topix rose 1.1 percent to 891.70.
Analysts said that given Wall Street's gains, the Nikkei may break above its 25-day moving average, now around 10,074, but t the benchmark needed fresh incentives to do so.
Japan's earnings season peaks on Friday, with big names such as Sony Corp and Panasonic due to announce results after the close.
Investors were also likely to remain somewhat wary ahead of a slew of U.S. events and economic indicators next week, including a Federal Reserve meeting.
"The Nikkei's fall earlier this week have made prices attractive for investors, but because today is the end of the week as well as the end of the month, look for profit-taking at the highs," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
JAL GAINS, EARNINGS IMPACT
JAL rose 1.7 percent to 117 yen after it said on Thursday it would apply for assistance from a state-backed corporate turnaround body, setting the stage for a large injection of public funds into the troubled airline.
The government has been scrambling to secure financing and map out a restructuring plan for JAL, which is headed for its fourth loss in five years, weighed down by $15 billion in debt and crippling pension costs.
Transport Minister Seiji Maehara said on Friday that the government will set up a new team of ministry officials to work on a JAL bailout, including bridging loans.
Earnings were also a big factor for individual shares.
Nintendo fell to 22,970 yen after it announced that its second quarter profit was 64 billion yen compared to a consensus forecast for 90 billion yen, reflecting cooling demand for its family-friendly games as rivals Sony and Microsoft Corp bolster their catalogue of games that appeal to die-hard players.
But Olympus Corp surged 8.7 percent to 2,885 yen after the Nikkei business daily said the company is expected to post a operating profit of 28 billion yen for the April-September first half, beating the company's own forecast of 19 billion yen.
Sharp Corp climbed 3.1 percent to 995 yen after posting its first quarterly profit in a year as TV and screen panel demand recovered, though a 15 percent fall in overall sales and a cautious company outlook means strong earnings growth is still elusive -- a problem that analysts said could plague other firms as well.
"We're seeing gains in profits, but without a rise in sales even these good results lack long-term power as incentives," said Kenichi Hirano at Tachibana Securities.
Among exporters, Sony rose 3.5 percent to 2,805 yen, Canon Inc gained 2.3 percent to 3,550 yen and Toyota Motor Corp rose 2.8 percent to 3,670 yen. Trade was moderate on the Tokyo exchange's first section, with 892 million shares changing hands, roughly in line with last week's morning average.
Advancing stocks outnumbered declining ones by nearly 3 to 1. (Reporting by Elaine Lies; Editing by Edwina Gibbs)