Nikkei surges on BOJ rate cut talk, yen fall

(Updates to midday)

TOKYO, Oct 29 (Reuters) - Japan's Nikkei average rose 6.4 percent on Wednesday as Honda Motor Co (7267.T) and other exporters surged after the yen fell on chances that the Bank of Japan will cut interest rates later this week. The BOJ will consider cutting rates but will watch market conditions before making a final decision, a source informed on the matter told Reuters. [ID:nN28606033]

Still, talk of a cut heartened the benchmark Nikkei .N225 and helped it gain 487.42 points to 8,109.34 by midday in moderately active trade, on track for its second successive day of gains. It had earlier risen more than 7 percent.

The broader Topix rose 5.3 percent to 825.39 after earlier rising more than 7 percent. (Reporting by Elaine Lies)