LONDON (Reuters) - JP Morgan has kept its "overweight" recommendation on UK equities, arguing that relatively high dividend yields, sterling weakness and the possibility of further rate cuts from the Bank of England should support the market.

"We reiterate our 'Overweight' call on UK equities that we initiated early this year," JP Morgan equity strategist Mislav Matejka said in a research note.

"UK is a defensive market with the highest dividend yield out of main regions, at 3.9 percent. UK 10-year yields have fallen almost 150 basis points year-to-date, and BoE is likely to cut further," he said, adding that a slump in sterling after June's Brexit vote would also help the FTSE 100's exporters.

(Reporting by Sudip Kar-Gupta; editing by John Stonestreet)