Japan Nikkei rises over 1 pct, eyes on yen

(Updates to midsession)

TOKYO, March 18 (Reuters) - Japan's Nikkei rose more than 1 percent on Tuesday, buoyed by gains in Canon Inc (7751.T) and other exporters as the yen held above a 13-year low, but gains were limited ahead of a Federal Reserve board meeting later in the day.

Banks battered by Monday's tumble, which took stocks down nearly 4 percent to a fresh 2-½ year low, edged higher, with top lender Mitsubishi UFJ Financial Group (8306.T) up 3.3 percent. The benchmark Nikkei .N225 was up 1.5 percent to 11,959.56 at midsession, a day after falling to its lowest close since August 2005. The broader TOPIX was up 1 percent at 1,160.67. (Reporting by Elaine Lies)