* Nikkei rises to highest point since Jan. 9
* Topix up 7.8 pct on week, biggest gain since 1997
* REIT, property stocks climb as financing worries ease
* Elpida continues rally on share issue plan
By Rika Otsuka
TOKYO, March 27 (Reuters) - Japan's Topix index posted its biggest weekly gain since 1997 and the Nikkei average reached its highest point in more than two months on Friday, with exporters such as Canon Inc rising on growing optimism about a recovery in the U.S. economy.
But both the Topix and the Nikkei ended the day with slight losses as many stocks succumbing to profit-taking after rallies over the past two weeks.
Shares of real estate investment trusts (REITs) such as Kenedix Realty Investment Corp and property firms surged after the Nikkei business daily reported that Japan may start a fund to buy REIT properties.
"Few are willing to sell aggressively as there are signs of improvement in the U.S. economy," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"It's true some are taking profits on a recent rally. But there is also enough buying to offset the negative impact from profit-taking," Nishi said.
The benchmark Nikkei ended down 0.1 percent or 9.36 points at 8,626.97 after climbing as high as 8,843.18, its highest since Jan. 9. On the week, the Nikkei jumped 8.6 percent, the biggest weekly rise since late October.
On Thursday the Nikkei had posted its highest close since early January, having jumped nearly 1,600 points or over 22 percent from a 26-year closing low near 7,000 hit on March 10.
The broader Topix edged down 0.3 percent to 824.53. But for the week it soared 7.8 percent.
U.S. stocks rallied for a second straight day on Thursday, taking the Nasdaq back into positive territory for the year to date.
Investors were encouraged by data showing the U.S. economy contracted slightly less than expected in the fourth quarter, though still at its fastest pace since 1982.
Earlier this week, data on housing and durable goods also showed signs of revival in the economy.
Trade was moderate on the Tokyo exchange's first section, with 2.2 billion shares changing hands, in line with last week's daily average.
Declining stocks outnumbered advancing ones 870 to 741.
PROPERTY, REIT STOCKS SURGE
The Nikkei newspaper said Japan's ruling coalition may set up a fund that would use money raised from the public and private sectors to buy propyashi; Editing by Michael Watson)