TOKYO, Dec 9 (Reuters) - Japan's Nikkei average rose 0.5 percent on Thursday after foreign funds switched to buying financial shares from exporters as yen the regained strength, but the Nikkei backed off from a fresh seven-month high amid signs of overheating.
Market players cited keen interest from foreign investors, who have helped drive Tokyo equities 12 percent higher since the beginning of November. Capital flows data showed they were net buyers of Japanese stocks for a fifth straight week last week.
The benchmark Nikkei closed the day up 53.55 points at 10,285.88. At one point it hit a seven-month high of 10,298.25.
The broader Topix index rose 0.5 percent to 891.60. (Reporting by Antoni Slodkowski; Editing by Chris Gallagher)