Tokyo stocks track Wall Street higher, Isuzu gains

TOKYO, Aug 30 (Reuters) Japanese stocks rose more than 1 percent on Thursday, led by exporters such as Sony Corp after Wall Street powered higher on gains in technology stocks, but the topside was heavy after the yen rebounded from sharp losses overseas.

TDK Corp jumped 4.9 percent after the world's largest maker of hard disk drives said on Wednesday it would buy 74.3 percent of Thailand-based Magnecomp Precision Technology for 3 million.

But overall, trade was relatively thin and strong incentives lacking, with many in the market awaiting U.S. indicators for clues on economic trends there.

''The yen has firmed a bit here in Tokyo trading, and this has made gains in the Nikkei more limited than some thought they might be after Wall Street rose so much yesterday,'' said Takahiko Murai, a general manager of equities at Nozomi Securities.

''There's still some concern about consumption in the United States, so some in the market are waiting for U.S. indicators due later today such as housing prices.'' Wall Street also took heart from a letter from Federal Reserve Chairman Ben Bernanke in which he said the Fed was ''prepared to act as needed'' to ensure credit market problems do not adversely affect the economy, stoking investor speculation about a much hoped-for interest rate cut.

But Murai said that while this was being watched, a rate cut had already been priced in to some extent.

The benchmark Nikkei average was up 1.42 percent percent or 226.81 points at 16,239.64 at 0112 GMT.

The broader TOPIX index rose 1.12 percent or 17.42 points to 1,574.97.

Isuzu Motors Ltd powered up by 2.8 percent to 615 yen after it and General Motors Corp said on Wednesday they would work together more closely in South America, possibly through a joint venture, to boost truck sales in the fast-growing market there.

The two companies, which dissolved their 35-year equity alliance last year, said in a statement they had signed a basic agreement to reinforce an existing operational partnership to expand sales of Chevrolet-badged Isuzu trucks in Colombia, Venezuela and Ecuador.

Sony Corp was up 1.9 percent at 5,330 yen, and Honda Motor Co Ltd rose 1.4 percent to 3,740 yen.

Reuters RKM VP0715