* Moves further away from 16-month lows
* Buying of futures likely helping to lift Nikkei -analysts
TOKYO, Sept 10 (Reuters) - Japan's Nikkei average rose 1.9 percent on Friday, helped by what some market players said was buying of futures and a slight softening in the yen against the dollar.
Stronger-than-expected U.S. data on jobless benefits and trade and an upward revision to Japan's second-quarter GDP, though widely expected, added to investor confidence, market players said, with blue-chip exporters leading the market's advance.
"Easing of European financial worries and dollar/yen trading in the 84 yen level prompted some short-covering," said Kenichi Hirano, operating officer at Tachibana Securities.
"Further upward impetus came from funds that had waited until they saw the settlement price of options and futures to join buying in the market."
The benchmark Nikkei rose 173.73 points to 9,272.12, pulling away from a 16-month low of 8,796.45 hit on Sept. 1.
The broader Topix gained 1.4 percent to 838.75.
Estimates by local brokerages slightly after the open showed Nikkei futures and options contracts expiring in September likely settled at 9,150.32. The official settlement price will be announced by the Osaka Securities Exchange after the market closes on Friday.
In early Asia trade, the dollar changed hands at 84.26 yen, compared with the 15-year low of 83.34 yen hit this week as investors bet Japanese authorities were not ready to intervene to weaken their currency.
U.S. stocks edged up after new U.S. claims for unemployment insurance fell more than expected last week to their lowest level in two months.
The U.S. trade deficit narrowed more than forecast in July as exports shot to the highest level since August 2008, painting a rosier picture for economic growth.
Camera maker Canon Inc climbed 5.4 percent to 3,740 yen after the company said on Thursday it would spend as much as 50 billion yen to buy back up to 1.2 percent of its shares outstanding between Sept. 10 and Nov. 12 to improve its capital efficiency.
Other exporters rose, with Kyocera Corp gaining 2.1 percent to 7,700 yen. (Reporting by Aiko Hayashi; Editing by Chris Gallagher)