NOVELTY - Manufacture of coated nickel hydroxide powder involves dispersing nickel hydroxide powder in water to prepare suspension, supplying aqueous alkali solution to the suspension, stirring to maintain the pH at 8 or more at 25 degrees C, and supplying aqueous cobalt salt solution to the suspension to coat the surface of each particles of nickel hydroxide powder with cobalt hydroxide crystallized out by neutralization.    USE - Manufacture of coated nickel hydroxide powder used as cathode active material for alkaline secondary battery used as power source for portable device, electric car and hybrid car.    ADVANTAGE - The method provides coated nickel hydroxide powder having uniform dispersion and high conductivity. The battery using coated nickel hydroxide powder as cathode active material has excellent output characteristics and durability.    DETAILED DESCRIPTION - Manufacture of coated nickel hydroxide powder involves dispersing nickel hydroxide powder in water to prepare suspension, supplying aqueous alkali solution to the suspension, stirring to maintain the pH at 8 or more at 25 degrees C, and supplying aqueous cobalt salt solution to the suspension to coat the surface of each particles of nickel hydroxide powder with cobalt hydroxide crystallized out by neutralization. The ratio (( rho )/(dx v)) of supply rate ( rho ) (mol/second) of cobalt salt in the aqueous cobalt salt solution and product of supply width (d) (cm) of aqueous cobalt salt solution measured in a direction orthogonal to the flow direction of suspension and flow velocity (v) (cm/second) of suspension in contact portion between the liquid surface of suspension and aqueous cobalt salt solution as supply position of the aqueous cobalt salt solution, is, 3.5x 10-4 mol/cm2 or less. An INDEPENDENT CLAIM is included for coated nickel hydroxide powder, which comprises nickel hydroxide powder particles having coating layer of cobalt compound the on surface. The content of cobalt compound coating layer peeled off is 20 %mass or less of total content of cobalt compound coating.