* Cyclical stocks up on China stimulus hopes
* Nikkei has a resistance level at 23,000
* About 40 companies to announce earnings on Wednesday
By Tomo Uetake
TOKYO, July 25 (Reuters) - Japanese shares rallied for a second day on Wednesday, buoyed by gains by steelmakers and metal producers, as markets cheered Beijing's pledges of a more vigorous fiscal policy.
The benchmark Nikkei share average rose 0.45 percent to 22,610.83 by the mid-morning break. However, the upside was seen as limited for now as the 23,000-mark has been a stubborn resistance for the Nikkei.
On Monday, the Nikkei dropped 1.3 percent, then on Tuesday it advanced 0.5 perecent.
Some sectors of the market "have certainly got a boost from the news of China stimulus plans," said Yuya Fukue, trader at Rheos Capital Works. "I think the hopes will continue to provide a tailwind for some time."
On Monday, Chinese state radio, citing the cabinet, said that Beijing will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus.
Gainers were led by iron and steel, non-ferrous metal and machinery companies, with JFE Holdings, Sumitomo Metal Mining climbing 3.3 percent 3.9 percent, respectively.
Bucking the overall trend, Yamato Holdings dropped 1.8 percent after the logistics provider announced it overcharged corporate clients by about 1.7 billion yen ($15 million) for moving services, prompted by a whistleblower's alert.
The broader Topix gained 0.45 percent to 1,754.74 by midday, while the JPX-Nikkei Index 400 was up 0.47 percent at 15,529.90.
Mitsubishi Motor dropped 3.8 percent from nine-month highs marked the previous day on profit-taking although its earnings announced the previous day beat market expectations.
Fiscal first-quarter earnings season enter full swing on Wednesday, with about 40 companies, including Shin-Etsu Chemical , Nidec and Fanuc, announcing results.
$1 = 111.29 yen Reporting by Tomo Uetake; Editing by Richard Borsuk