Japan stocks climb, TOPIX rises more than 3 pct

(Updates to midsession)

TOKYO, Jan 25 (Reuters) - Japanese shares rose on Friday, with the TOPIX index gaining more than 3 percent as bank shares climbed after news that troubled U.S. bond insurer Ambac may be in talks with a buyer. [nN24269634] A retreating yen boosted Nissan Motor Corp (7201.T) and other blue-chip exporters, while Wall Street's rebound on a U.S. tax rebate plan gave investors enough confidence to buy across the board. The benchmark Nikkei .N225 was up 2.8 percent at midsession to 13,459.83, a gain of 367.05 points. The broader TOPIX was up 3.4 percent at 1,327.57, a gain of 43.12 points. (Reporting by Elaine Lies)