Nikkei jumps 3 pct, trading houses and banks gain

*Nikkei up 3 percent as trading houses, banks gain

*Lenders rise on relief at U.S. bank earnings reports

*Market climb picks up after bond futures trade resumes (Recasts, adds stocks, details)

By Taiga Uranaka

TOKYO, July 22 (Reuters) - Japan's Nikkei stock average posted its biggest daily percentage gain in eight weeks on Tuesday, jumping 3 percent as Itochu Corp (8001.T: Quote, Profile, Research, Stock Buzz) climbed on overnight gains in oil, while financials rose on relief that major U.S. banks' earnings were not as bad as feared.

Shin-Etsu Chemical Co Ltd (4063.T: Quote, Profile, Research, Stock Buzz), the world's biggest maker of silicon wafers, gained sharply after it reported a 13 percent rise in quarterly profit. [ID:nT303306]

Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) raced higher as investors saw the automaker and other recently battered blue-chip exporters as bargains.

After spending much of the day within a narrow range, the market accelerated its gains after trading in Japanese government bond futures was resumed in the late afternoon. A system glitch had forced the Tokyo Stock Exchange earlier to suspend trade of JGB futures, TOPIX index futures and other derivatives.

"The system trouble had an impact on the stock market as it took away arbitrage trading between bonds and stocks," said Masayoshi Yano, senior market analyst at Meiwa Securities, adding that the resumption of trade removed a lid on the market's gains.