Nikkei rises, buoyed by business mood poll and oil

(Updates to midmorning)

TOKYO, July 1 (Reuters) - Japan's Nikkei stock average rose 0.3 percent on Tuesday, buoyed by a better than expected business mood survey, with Mitsubishi Corp (8058.T) and other trading houses rising after oil hit a new record high.

Nippon Steel Corp (5401.T) and JFE Steel Corp (5411.T) edged lower after saying they had agreed with global miner Rio Tinto (RIO.AX)(RIO.L) to pay nearly double the previous price for Australian iron ore. The benchmark Nikkei .N225 rose 45.15 points to 13,526.53, on track to snap an eight-day losing streak. The broader Topix was up 0.5 percent at 1,326.76. (Reporting by Elaine Lies;)