* Nikkei stalls, posts worst week in three months
* U.S. data provides hope but more needed for rise
* GS Yuasa, eco-friendly shares tumble on profit-taking
* Banks rise as brokerages lift target price, view
By Elaine Lies
TOKYO, June 19 (Reuters) - Japan's Nikkei average clung to gains of 0.9 percent on Friday but posted its worst week in three months, with jittery investors needing more proof that the economic recession is easing in order to push shares higher.
Battery maker GS Yuasa and shares in companies similarly seen as eco-friendly tumbled on profit-taking after steep recent gains, but banks rose after brokerages took a positive stance by upgrading or raising target prices.
Elpida Memory Inc climbed 3.3 percent after three sources familiar with the matter said the chip maker plans to apply for tens of billions of yen in government funds this month to shore up its depleted capital.
But a week after posting an eight-month closing high above 10,000, the benchmark Nikkei had its worst week since early March as investors raced to take profits, pushing it down 3.5 percent for the week.
"Investors really bought on expectations of economic recovery, but now we need something to back those feelings up. Without this, going back above 10,000 is likely to be tough," said Katsuhiko Kodama, senior strategist at Toyo Securities.
Others said that given the Nikkei's steep gains during its three-month rally, which lifted it some 45 percent from a March 10 low to last Friday's high, it would not be at all surprising for it to take a breather and consolidate -- perhaps until mid-July, when companies start to report earnings.
The Nikkei average rose 82.54 points to 9,786.26, having retreated from an eight-month closing high of 10,135.82 hit a week ago. The broader Topix edged up 0.9 percent to 918.97.
"The 10,000 level is a gain of roughly 30 percent from the start of April. Anyone would sell if they have a 30 percent profit," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
UNCERTAINTY REIGNS
Though the market took heart from gains made on Wall Street after positive economic data was released on Thursday, uncertainty reigned in several areas.
The market was keeping a wary eye on North Korea amid news reports that it may be looking to launch a long-range missile towards Hawaii in the coming weeks, with some analysts saying that while such a test was unlikely to have much of a direct impact on stocks, the general uncertainty about Pyongyang could be weighing on shares.
Recent market conditions also point to some weakness, with the Nikkei breaking below a trendline earlier this week and some large-cap stocks such as Honda Motor Co in the same plight. Among Friday's losers were car battery maker GS Yuasa Corp, which slid 13.8 percent to 976 yen. GS Yuasa, one of the most actively traded Nikkei 225 stocks this year, had climbed as high as 1,228 yen this week, its share price having tripled from a March trough of 376 yen.
Shares of car battery makers such as GS Yuasa have gained in popularity in recent months as investors flocked to companies seen strong in eco-friendly technology.
Sanyo Electric fell 4.1 percent to 259 yen after soaring on Wednesday after the firm said it had secured hybrid battery buyers in the United States, Europe and Japan. But banks climbed, with positive sentiment from gains by their U.S. peers bolstered as brokerages lifted ratings and target prices.
Mizuho Financial Group rose 3.7 percent to 250 yen after Goldman Sachs analysts took Mizuho off their "conviction sell list" and upgraded the bank to "neutral".
Sumitomo Mitsui Financial Group gained 4.1 percent to 4,080 yen and Mitsubishi UFJ Financial Group also rose 4.1 percent to 616 yen after Mizuho Securities raised their target prices the previous day.
Trading firms gained as oil rose and copper steadied after a 5 percent decline earlier this week. Mitsubishi Corprose 1.8 percent to 1,826 yen, Mitsui & Co rose 3.5 percent to 1,179 yen and Itochu Corp gained 2.1 percent to 672 yen.
Trade was reasonably active, with 2.47 billion shares changing hands on the Tokyo exchange's first section, just below last week's daily average of 2.51 billion shares.
Declining shares outnumbered advancing ones by nearly 2 to 1. (Additional reporting by Masayuki Kitano; Editing by Michael Watson)