Japan stocks rise 2 pct on U.S. bond insurer hopes

(Updates to midsession)

TOKYO, Feb 25 (Reuters) - Japanese shares climbed about 2 percent on Monday, with Millea Holdings (8766.T: Quote, Profile, Research, Stock Buzz) and other insurers surging after talk of a U.S. bond insurer rescue plan eased concerns about the subprime loan crisis.

Another boost came from a report in Britain's Times newspaper that China's sovereign wealth fund planned to buy as much as $10 billion in Japanese stocks and may consider purchasing a large stake in oil and gas developer Inpex Holdings Inc (1605.T: Quote, Profile, Research, Stock Buzz), which also climbed. [ID:nT2430]

The benchmark Nikkei .N225 was up 2.1 percent at midsession at 13,780.35, a rise of 279.89 points, after earlier gaining more than 300 points. The broader TOPIX was up 1.9 percent at 1,346.56. (Reporting by Elaine Lies)