Japan's Nikkei up 1.2 pct, Toshiba jumps on HD DVD

(Updates to midmorning)

TOKYO, Feb 18 (Reuters) - Japan's Nikkei share average rose 1.2 percent on Monday, with better-than-expected economic data last week helping to ease market worries.

Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz) jumped more than 4 percent after a company source said it plans to give up on its HD DVD format for high-definition video.

"The market mood has improved following GDP and U.S. retail data last week," said Noritsugu Hirakawa, strategist at Okasan Securities.

Japan's GDP and U.S. retail sales data came out stronger than expected last week, helping the Tokyo market post its first weekly gain this year.

As of 0058 GMT the benchmark Nikkei .N225 average rose 1.2 percent to 13,780.85 and the broader TOPIX was up 0.9 percent at 1,346.97.

Toshiba rose 4.2 percent to 817 yen after a company source said at the weekend it planned to abandon its HD DVD format for high-definition DVDs.

The move would concede defeat to the competing Blu-ray technology backed by Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) and likely put an end to a battle that has gone on for several years between consortiums led by Toshiba and Sony vying to set the standard for the next-generation DVD and compatible video equipment.

Sony climbed 2.1 percent to 4,950 yen.