Japan stocks jump over 2 pct on Fed liquidity move

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By Taiga Uranaka

TOKYO, March 12 (Reuters) - Japanese stocks jumped more than 2 percent on Wednesday following a rally on Wall Street after the Federal Reserve moved to provide additional liquidity to credit markets.

Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) and other exporters pulled ahead, helped also by the dollar regaining some ground against the yen.

Bank shares, among the hardest hit in recent sessions, soared. No.3 lender Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) jumped 7 percent. Other financials such as Japan's biggest brokerage Nomura Holdings Inc (8604.T: Quote, Profile, Research, Stock Buzz) also gained sharply.

The market got an additional boost from revised Japanese gross domestic product figures for October-December that beat economists' forecasts.

But the market was off the day's high touched immediately after the opening as investors remained cautious about the overall health of the economy, and gains were seen limited as the Fed's latest move was expected to be a temporary jolt.

"The Tokyo market's move is likely to be held within that of Wall Street. There is no domestic factor," said Naoteru Teraoka, general manager of investment management division at Chuo Mitsui Asset Management.

In a coordinated effort with other central banks, the Fed will offer up to $200 billion of highly liquid U.S. Treasuries, effectively allowing banks to exchange unwanted mortgage notes for easy-to-sell government securities. [ID:nN11555562]