(Updates at 0200 GMT)

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

rose more than 2% 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 had risen 2.6% to 37,317.39 by 0202 GMT.

The dollar rose broadly, recovering from an earlier tumble

in the immediate aftermath of the Fed's outsized rate cut on

Wednesday that had been largely priced in by markets. Against

the yen, the greenback gained nearly 1% to 143.56 in Asia trade.

Fumio Matsumoto, chief strategist at Okasan Securities,

attributed the dollar's gains to expectation 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.

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

(TSE) were trading higher. Automakers led the advance

with a rise of 4.7%.

The broader Topix was up 2,41% at 2,627.18, with

Toyota Motor ( TM ) jumping 5.7% to provide the biggest boost,

while Honda Motor ( HMC ) climbed 4.59%.

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

5.95%.

Investors had avoided buying automakers this month due to

the yen's gains, said Matsumoto.

Uniqlo brand owner Fast Retailing ( FRCOF ) rose 2.95% and

was the biggest boost to the Nikkei. Technology start-up

investor SoftBank Group climbed 2.92%.

Of the more than 1,600 stocks trading on the TSE's prime

market, 90% rose and 8% fell, with 1% trading flat.