* Nikkei close to last week's 11-month highs
* Market sentiment lifted after Dow, S&P set records
* Pharma sector slumps after Trump vows to bring down drug
TOKYO, Dec 8 Japan's Nikkei share average rose
on Thursday, fuelled by a further rise on Wall Street, but a
stronger yen kept gains in check.
The Nikkei finished the morning up 0.8 percent at
18,649.03 points, nearing last week's 11-month high.
On Wednesday, the Dow Jones industrial average and
the S&P 500 hit fresh records as equities continued their
march upward after the last month's vote for Donald Trump as
Investors encouraged by Trump's plans for economic stimulus
and to reduce corporate taxes and regulations have pushed U.S.
shares higher, though analysts and market participants are wary
about how long the rally will last.
"The fizz has waned," said Stefan Worrall, director of Japan
equity sales at Credit Suisse in Tokyo.
"It's dangerous to pick the top here. It's hard to see how
much people have capitulated on the upside, and my sense is that
there's still a lot of money on the sidelines."
Hopes for U.S. stimulus and inflation-stoking policies from
the Trump administration have also pushed up the dollar versus
the yen, underpinning Japanese shares.
But the greenback's rise has since paused, with the yen
retaking a bit of lost ground on Thursday.
Japanese shares largely shrugged off surprisingly downbeat
economic data earlier in the session.
The Cabinet Office slashed its economic growth reading for
July-September, revising down initial estimates of capital
expenditure and inventories.
Investors reported little impact from a brief delay in the
opening of Nikkei 225 index futures. Singapore Exchange Ltd
did not give a reason for the delay.
Tokyo Electric Power Company Holdings Inc soared
12.9 percent after a source said Japan will increase an
interest-free loan related to its Fukushima costs.
Japan Display Inc initially gained after Nikkei
reported that its factory in Hakusan city will begin mass
producing smartphone display panels this month, but the stock
was down 0.3 percent by midday.
Asahi Glass added 1.3 percent, after Nikkei said
the company is moving forward with an acquisition of Thai
plastics maker Vinythai.
On the losing side, the pharmaceuticals subindex of the
Tokyo Stock Exchange drooped 1.5 percent, yanked down
in line with U.S. shares after Trump vowed in a Time magazine
article that he would "bring down drug prices."
The broader Topix gained 0.8 percent to 1,502.31,
while the JPX-Nikkei Index 400 also added 0.8
percent to 13,449.08.
(Reporting by Tokyo markets team; Editing by Kim Coghill)