Nikkei up 2.2 pct, led by exporters on U.S. GDP

*Nikkei up 2.2 percent, lifted by strong U.S. GDP data

*Fujifilm plunges after cutting outlook

*Banks rise after rally in Fannie Mae and Freddie Mac (Adds stocks and comment)

By Taiga Uranaka

TOKYO, Aug 29 (Reuters) - The Nikkei average rose 2.2 percent on Friday, led by exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) as surprisingly strong U.S. GDP data helped soothe concerns about the health of the world's biggest economy. [ID:nN28278433]

Fujifilm Holdings (4901.T: Quote, Profile, Research, Stock Buzz) plunged after slashing its annual operating profit forecast by nearly a quarter. [ID:nT63086]

All top three banks, including No.1 lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz), gained more than 3 percent after troubled U.S. housing financing giants and bond insurers jumped on Wall Street.

"With good U.S. GDP and sharp gains in Fannie and Freddie shares, investor worries have been eased for now," said Norio Shimura, deputy head of the equity department at Chuo Securities, referring to U.S. mortgage financing firms Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz).

"There is also the expectation that foreign investors will come back to the market after the Labor Day holiday," he said. The U.S. market will be closed on Monday.

The benchmark Nikkei .N225 ended the morning up 279.37 points at 13,047.62. The broader Topix .TOPX climbed 2.3 percent to 1,247.49.

A raft of Japanese economic data came out before the market opened, including industrial output, which rose 0.9 percent in July from a month earlier, above a median market forecast for a 0.5 percent decline. [ID:nT63497]

"The figure was so-so. Not good enough but not bad either, so it did not prevent the positive U.S. data and drop in oil prices from translating straight into gains in the Tokyo market," said Masanobu Takahashi, chief strategist at Ichiyoshi Securities.

FUJIFILM PLUNGES

Fujifilm slid 9.5 percent to 3,130 yen. The firm said its profits were hurt by higher raw material prices and heavier restructuring costs, with the revised outlook missing market estimates by a large margin.

UBS Investment Research cut its rating on the company to "neutral" from "buy" and its target price to 3,500 from 4,200 yen. Other brokerages also cut their target prices.

Digital camera maker Canon rose 2.7 percent to 4,920 yen and high-tech device maker Kyocera Corp (6971.T: Quote, Profile, Research, Stock Buzz) climbed 2.3 percent to 9,220 yen.  Continued...