TOKYO (Reuters) - Japan's Nikkei stock average rose 0.4 percent on Wednesday, buoyed by smelters on sustained demand for metals amid signs the global recession may be easing. Asahi Glass (5201.T) climbed after a slew of brokerage upgrades that cited long-term signs of hope for the economy. But investors remained wary and trade was subdued, with rises capped by profit-taking amid a lack of fresh trading factors and looming resistance levels. "There's been enough improvement in the global economy to say that we've put the worst-case scenario behind us, but we still need more proof that things are really improving," said Yutaka Miura, a senior technical analyst at Mizuho Securities. The benchmark Nikkei .N225 rose 34.95 points to 9,739.26 after closing at an eight-month high on Tuesday, while the broader Topix gained 0.2 percent to 915.17. It has gained 39 percent since hitting a bear market low just above 7,000 in March, but further gains will take time. "It was very tough to overcome resistance around 9,500 and it's also going to be hard to rise from here on in, basically because a lot of shares aren't keeping up with the economic improvement in terms of valuation," said Masayoshi Okamoto, head of trading at Jujiya Securities. "Nobody has enough confidence to hold onto shares for a long time, meaning they'll buy on dips and sell fast on rises." Resistance is seen at 9,800, where the 52-week moving average comes in, and then at 9,900 -- a 38.2 percent retracement from an early June 2008 high of around 14,600, after which the Nikkei began its tumble that led to a 26-year low just under 7,000 in late October. Activity is likely to be limited ahead of U.S. data due later on Wednesday, including durable goods orders, as investors seek further reassurance. A surprise surge in U.S. pending homes sales, which rose 6.7 percent in April for the largest monthly gain in seven and a half years, also helped support the Nikkei. GLASS AND METAL Given the dearth of strong overall factors, investors honed in on share or sector-specific details. Asahi Glass climbed 4.1 percent after a wave of brokerage upgrades, with J.P. Morgan initiating coverage on Monday at "overweight," Mizuho Securities on Tuesday hiking it from "3" to "2," and Goldman Sachs on the same day raising it to "buy" from "neutral" and putting it on its conviction buy list. "Potential upside catalysts for the shares are a profit overshoot versus guidance and macro indicators such as stronger auto production and construction starts," wrote Goldman Sachs analyst Mari Murakami.

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