(Updates at 0600 GMT)

TOKYO, Sept 19 (Reuters) - Japan's Nikkei share average

posted its highest closing level in more than two weeks on

Thursday, led by exporters as the yen weakened against the

dollar on prospects of slower-than-expected future rate cuts by

the U.S. Federal Reserve.

The Nikkei rose 2.13% to end at 37,155.33, its

highest close since Sept. 3.

The U.S. dollar rose broadly on Thursday, reversing a

brief tumble in the immediate aftermath of the Fed's outsized

interest rate cut that had been largely priced in by markets.

Against the yen, the greenback gained as much

as 1.2% to hit an intraday high of 143.95 earlier in the

session.

Fumio Matsumoto, chief strategist at Okasan Securities,

attributed the dollar's gains to expectations of slower U.S.

rate cuts going forward and the Fed's comment that the world's

top economy is not doing as bad as the market had worried.

"The (Japanese) market had expected the yen to strengthen

after the Fed's 50-basis-point rate cut and the domestic

equities to fall, but it turned out the yen weakened," said

Seiichi Suzuki, chief equity market analyst at Tokai Tokyo

Intelligence Laboratory.

The broader Topix rose 2.01% to 2,616.87, with

Toyota Motor ( TM ) jumping 5% to provide the biggest boost,

while Honda Motor ( HMC ) climbed 3.35%.

Toyota ( TM ) has lost 9.95% so far this month, while Honda ( HMC ) is

down 5.29%.

Investors had avoided buying automakers this month due

to gains in the yen, said Matsumoto.

All the 33 industry sub-indexes on the Tokyo Stock Exchange

(TSE) traded higher, with shipping firms rising 4.49%

to become the best performer.

The insurance sector rose 3.97% as Japanese

bond yields rose, while the automakers gained 3.84%.

Uniqlo brand owner Fast Retailing ( FRCOF ) rose 2.41% and

was the biggest boost to the Nikkei. Chip-making equipment maker

Tokyo Electron ( TOELF ) rose 2.47%.