Japan stocks rise as solid GDP spurs bank rebound

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TOKYO, Nov 13 (Reuters) Japanese stocks rose for the first time in eight sessions on Tuesday as solid economic growth data spurred investors to pick up financial shares that had been battered in a recent sell-off.

''Investors were encouraged by the GDP figures to buy oversold stocks that were ripe for a technical rebound,'' said Masayoshi Okamoto, head of dealing at Jujiya Securities.

''Banks were among the hardest hit. These are reverse moves to those falls.'' But Okamoto added that the market's gain was likely to remain a technical rebound given the lack of market-moving news.

''GDP figures came in better than expected, but I don't think these alone can keep driving up the market,'' he said.

Japan's economy grew 0.6 percent in the July-September quarter, government data released before the open showed, beating a consensus market forecast for a 0.4 percent expansion.

That translated into annualised growth of 2.6 percent, against a market forecast of 1.7 percent.

By 0118 GMT, Nikkei average was up 0.1 percent to 15,216.16.

The broader TOPIX index rose 0.7 percent to 1,465.89.

Japan's three largest banks made a sharp bounce. Mizuho Financial Group Inc rose 3.5 percent to 536,000 yen and Mitsubishi UFJ Financial Group gained 3.4 percent to 934 yen.

Sumitomo Mitsui Financial Group was up 2.7 percent at 754,000 yen.

On the downside, Isuzu Motors Ltd skidded 7.0 percent to 508 yen after the Japanese truck maker posted a 16 percent fall in first-half operating profit as a sharp drop in truck sales in Japan, North America and Thailand overshadowed a rise in oil-rich markets.

REUTERS SBA RAI0714

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