* Exporters lead the way as yen weakens

* Dentsu jumps on forecast hike

* Contractors weak on poor earnings concern

* China policy meeting in focus but limited impact on market

- analyst

By Ayai Tomisawa

TOKYO, Nov 12 (Reuters) - Japanese stocks sped to a near

two-week high on Tuesday morning, as exporters benefited from a

softer yen although contractors sagged on worries about their

earnings.

The benchmark Nikkei share average rose 1.6 percent

to 14,493.90 in mid-morning trade, comfortably trading above its

25-day moving average of 14,329.52 and the highest level since

Oct 31.

Exporters were higher, with Sony Corp rising 2.7

percent, Nissan Motor Co climbing 1.3 percent and

Panasonic Corp adding 1.0 percent.

The Topix rose 1.1 percent to 1,198.28, with all of

its 33 subsectors are in positive territory.

The dollar was trading at 99.52 against the yen, the

highest mark since Sept. 20.

A weaker yen sharpens exporters' competitiveness overseas

and bumps up their dollar earnings when repatriated.

"As long as the yen's weakness is steady, exporters are in

favor, but the market's gains are likely to be contained within

a 14,000-14,500 range this week," said Hikaru Sato, a senior

technical analyst at Daiwa Securities.

He said the persistent speculation over when the U.S.

Federal Reserve may start winding down its $85 billion-a-month

bond-buying programme is likely to remain a key driver of the

market.

Friday's data showing an unexpected surge in U.S. jobs

growth in October prompted markets to speculate of a possible

December start to stimulus-tapering.

Analysts said investors are also focusing on Tuesday's

Chinese Communist Party policy-meeting for China's economic

blueprint for the next decade.

"China has a big impact on the world's economy, so investors

are focused on it, but they are not expecting that there will be

a big surprise from the meeting," said Makoto Kikuchi, the chief

executive of Myojo Asset Management.

Other notable gainers include Dentsu Inc, which

rose 2.6 percent after the advertising agency lifted its

operating profit forecast for the year ending March to 65.6

billion yen from the previously forecast 58.5 billion yen.

Contractors were weak, with Obayashi Corp tumbling

4.1 percent, Kajima Corp falling 1.5 percent and

Shimizu Corp dropping 0.6 percent after the Nikkei

business daily reported that Obayashi's operating profit for the

April-Sept period fell short of market expectations.

The contractors will release their results in the afternoon.