Nikkei extends gains to 4 pct

TOKYO, Oct 28 (Reuters) - Japan's Nikkei average extended gains to 4 percent on Tuesday as investors bought beaten-down shares such as Honda Motor Corp (7267.T) and technology shares such as Tokyo Electron (8035.T).

But shares of major banks continued to weigh on the market on dilution concerns after top lender Mitsubishi UFJ Financial Group (8306.T) said it would raise up to $10.6 billion to replenish a capital base depleted by a plunging stock market and its investment in Morgan Stanley. (MS.N) [ID:nT13538]

By 0427 GMT the benchmark Nikkei .N225 gained 238.44 points to 7,401.34. Earlier in the day it fell as far as 6,994.90, its lowest since 1982.

The broader Topix added 2.5 percent to 764.96 after falling 3 percent at one stage. (Reporting by Elaine Lies)