Japan's Nikkei edges up, Toyota pares losses

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By Taiga Uranaka

TOKYO, March 11 (Reuters) - Japan's Nikkei share average edged up after hitting a fresh 2-1/2-year intraday low on Tuesday, with Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) paring losses.

Financial shares such as Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) remained in negative territory, tracking U.S. peers, which fell on mounting concerns of more credit losses.

"There seems to be buying by some European funds, and that pushed up the Nikkei. Shares have become cheap," said Kenichi Hirano, operating officer at Tachibana Securities.

"But that does not mean the market will see more buying in the afternoon."

The benchmark Nikkei .N225 ended the morning session up 0.1 percent at 12,549.33, after falling as low as 12,352.79. The broader TOPIX index shed 0.3 percent to 1,220.56.

Amid deepening concern about a U.S. recession and growing speculation that more credit losses may come from global financial institutions, Japanese stocks fell to a 2-½ year closing low on Monday.

Exporters such as automakers were under pressure, hurt by the stronger yen and the problems facing the world's largest economy.