Nikkei edges up, but tech shares weigh

* Nikkei edges up after 3-month closing high on Friday

* Tech shares slip as investors seek profits

* Investor attention on U.S. bank results this week

TOKYO, April 13 - Japan's Nikkei stock average edged up 0.1 percent Monday as hopes that the worst may be over for U.S. banks buoyed market sentiment, though tech shares such as Kyocera Corp slipped on profit-taking. Activity was limited after most major overseas centres were closed on Friday due to the long Easter weekend, but sentiment is expected to continue to draw support after Wells Fargo posted better-than-expected quarterly results.

"The market rose so rapidly late last week that there is a sense of overheating in sectors like high tech, but we're also seeing increased signs of market energy, and this will continue," said Hiroichi Nishi, general manager of the equity division at Nikko Cordial Securities.

"Fundamentally, worries about the U.S. financial system are easing. Even though the environment still remains tough in some ways, hopes are growing that things may start to improve."

Investors are keenly awaiting more U.S. bank results due out this week, including Citigroup on Friday, and trade activity is likely to be slow.

Other analysts noted that selling seemed to be limited mainly to light profit-taking after sharp gains at the end of last week lifted the Nikkei to a 3-month closing high and its fifth positive week in a row, the first such run in nearly a year.

"You can see how sentiment is different because even the news of the possible Toyota loss did not set off widespread selling," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

The Nikkei business daily reported at the weekend that Toyota Motor Corp's operating loss could climb to over 500 billion yen in the year, in line with a median forecast of 550 billion yen in a a survey of 19 brokerages by Reuters Estimates.

The benchmark Nikkei gained 4.57 to 8,968.681, while the broader Topix was up 0.4 percent to 849.57. Toyota edged up 0.5 percent to 3,930 yen.

Kyocera lost 1 percent to 6,810 yen and TDK Corp fell 1.7 percent to 4,080 yen.

Shares of Softbank Corp, Japan's No. 3 wireless carrier, gained 3.4 percent to 1,572 yen after it hiked its operating profit outlook for the financial year just ended by 3 percent on cost-savings, although it said it would book a $748 million derivatives loss.