* Nikkei rises above July peak, gaining upward momentum
* Clear break above 9,750-9,800 would lead way towards 10,000
* Financials gain after FT report on global regulation
By Aiko Hayashi and Chikafumi Hodo
TOKYO, Nov 10 (Reuters) - Japan's Nikkei climbed more than 1 percent to a four-month high on Wednesday, buoyed by financial shares after a report that most major Asian banks will be exempt from planned new global regulations, while exporters rose on a weaker yen.
The benchmark Nikkei rose above resistance at 9,807, a peak hit in July, feeding into upward momentum. Traders said a clear break beyond that level could trigger a series of stop-loss buying and options-related triggers and pave the way for an advance towards 10,000.
Japan's big banks surged after the Financial Times reported that people who were briefed on the agenda for the G20 summit in Seoul said officials have concluded that global regulators should focus on big banks with global businesses, stripping out domestically focused institutions.
"Financial shares that had been lagging behind started moving after the FT report, while exporters climbed helped by the weakening in the yen. We now have fewer and fewer major sectors that would weigh on further market gains," said Koichi Nosaka, a market analyst at Securities Japan, Inc.
"The July peak had formed resistance for the Nikkei, and if it manages to end the day above the level, more gains will be clearly in order."
By the midday break, the benchmark Nikkei had gained 1.2 percent to 9,807.60, after rising as high as 9,842.90, its highest since late June.
A series of technical selling had been blocking the Nikkei's rises around 9,750-9,800. Its support likely stands around its 26-week moving average, now around 9,500.
On Tuesday, the Nikkei dipped on profit-taking, following a more than 6 percent jump over the previous four sessions.
Global equities have climbed as the outlook for the U.S. economy improved after the Federal Reserve decided to buy more debt and after encouraging U.S. jobs data. U.S. stocks hit two-year highs, though they are taking a breather this week.
The broader Topix added 1.3 percent to 850.87.
"The Topix is outperforming the Nikkei due to the strength in financials, but an upbeat mood was already in place ahead of the special quotation scheduled this week," said Takashi Ohba, a senior strategist at Okasan Securities.
The rise accelerated after active stop-loss buy orders were triggered after the Nikkei broke through 9,750. A series of option-related orders had been rumoured to be lined up around that level ahead of the "SQ" this week, Ohba said.
The closely watched settlement price, known in Japan as the special quotation or "SQ", is calculated from the opening prices of the 225 shares on the Nikkei average on the second Friday of the month.
It is calculated monthly for options and every three months for futures.
"The next key options-related trigger point is seen around 10,000, but I don't think the market has the energy to break this level today," Ohba said.
The dollar rallied broadly on Tuesday as debt risks in the euro zone's periphery weighed on the euro and as U.S. bond yields jumped. In Asian trade Wednesday, the dollar traded at 81.68, moving away from its all-time low of 79.95 yen.
Wall Street fell for a second day on Tuesday as selling accelerated into the close, led by sharp losses in bank and metal stocks.
BANKS HIGHER
Financial shares climbed. Mizuho Financial Group soared 5.9 percent to 125 yen, Sumitomo Mitsui Financial Group jumped 5.1 percent to 2,495 yen and Mitsubishi UFJ Financial Group rose 4.5 percent to 394 yen.
Nomura Holdings advanced 4.2 percent to 446 yen.
Exporters gained, with Canon Inc adding 2.3 percent to 3,965 yen and Advantest climbing 2.6 percent to 1,632 yen.
Nippon Telegraph and Telephone Corp, Japan's largest telephone company, jumped 3.6 percent to 3,885 yen after it announced on Tuesday it would cancel 7.97 percent of its shares outstanding, worth 470 billion yen at the current market price, on Nov. 15.
But Acom Co dropped 1.9 percent to 824 yen after Japan's biggest consumer lender by market value said on Tuesday that it would sink deeper into the red this financial year, hit by mounting costs from refunding overcharged interest to borrowers. (Editing by Chris Gallagher)