Japan's Nikkei up 2 pct, tracking Wall Street

(Updates to midsession)

TOKYO, Feb 21 (Reuters) - Japanese shares rebounded on Thursday after sharp losses in the previous session, getting a boost from overnight gains on Wall Street.

Bank of Ikeda (8375.T: Quote, Profile, Research, Stock Buzz) and Senshu Bank (8372.OS: Quote, Profile, Research, Stock Buzz) jumped more than 10 percent after the two Osaka-based regional banks said they were considering merger talks. [ID:nT16436]

The benchmark Nikkei .N225 ended the morning session up 2.1 percent at 13,592.51, while the broader TOPIX index was up 2 percent at 1,328.45. (Reporting by Taiga Uranaka; Editing by Chris Gallagher)