Japan stocks gain as banks rebound after sell-off

TOKYO, Nov 6 (Reuters) Japanese stocks picked up steam on Tuesday after dropping nearly 2 percent the previous session, with bank shares such as Mitsubishi UFJ Financial Group regaining some ground following a recent sharp sell-off.

But Chugai Pharmaceutical Co Ltd weighed on the market, sliding nearly 4 percent after it said it would halve this winter's supply of the influenza drug Tamiflu in Japan to a quantity sufficient for 6 million people.

The Nikkei was up 0.5 per cent, or 85.01 points, at 16,353.93.

On Monday, the benchmark logged its lowest close since Sept 18.

The broad-based TOPIX added 0.9 per cent, or 13.57 points, to 1,588.70, after ending the previous session down 1.6 per cent on widening credit fears.

REUTERS MP AS0753