Japan Nikkei extends gains, now up 3 pct

TOKYO, Jan 25 (Reuters) - Japan's benchmark Nikkei average extended gains on Friday, jumping more than 3 percent as banks rose after news that troubled U.S. bond insurer Ambac may be in talks with a buyer.

The weaker yen boosted exporters such Nissan Motor Corp 7210.T and other blue-chip exporters, while a Wall Street rebound after a U.S. tax rebate plan was announced gave investors confidence to buy across the board.

At 0334 GMT the Nikkei .N225 was up 3.3 percent at 13,518.07 and the broader TOPIX TOPX up 3.8 percent at 1,333.09.

(Reporting by Elaine Lies)