Nikkei recovers after sell-off, Isuzu Motors up

TOKYO, Apr 3 (Reuters) The Nikkei average rose 1.26 percent on Tuesday as investors returned to shares of Advantest Corp., Honda Motor Co. Ltd. and other stocks hit in the previous session's sell-off.

Isuzu Motors Ltd. jumped more than 3 percent after HSBC Securities Japan Ltd. upgraded the stock, while Bridgestone Corp.

rose by about the same margin as its U.S. unit announced price increases on tyres.

''The market was oversold on Monday and we are seeing a rebound,'' said Shinji Igarashi, equity manager at Chuo Securities. ''Large-cap technology shares, which have been laggards, are sought after and helping the Nikkei to advance,'' he added.

The Nikkei rose 214.93 points to 17,243.34 as of 0439 GMT, recouping some of its 1.5 percent loss from Monday. The broad TOPIX index was up 1.28 percent at 1,704.02.

Yosuke Shimizu, head of the investment information centre at Monex Inc., said the market appeared to be volatile with investors uncertain what to buy.

''The outlook for the dollar/yen and the U.S. economy remain opaque, and investors tend to follow short-term movements,'' he said. ''I don't think investors really know what to buy at the moment.'' Chip-equipment maker Advantest rose 3.5 percent to 5,320 yen, recovering from a 1.7 percent loss the previous session.

Auto maker Honda added 2.5 percent to 4,150 yen after falling 1.5 percent the previous session.

In the same sector, Isuzu Motors rose 3.8 percent to 600 yen after HSBC Securities Japan Ltd. on Tuesday raised its rating on the stock to ''overweight'' from ''neutral''.

Another notable stock was Mitsui&Co. Ltd., which added 3.1 percent to 2,170 yen after it won a 90 billion yen order together with a group of companies for the Saudi railway project.

Tyre maker Bridgestone Corp. gained 3.2 percent to 2,410 yen as its U.S. unit announced price increases on tyres.

REUTERS CS Ds1123