Japan's Nikkei up 1.8 pct as financial worries ease

(Updates to midsession)

TOKYO, July 9 (Reuters) - The Nikkei stock average rose 1.8 percent on Wednesday, rebounding from a three-month closing low the previous day, as financial shares such as Mitsubishi UFJ Financial Group (8306.T) jumped after comments from the U.S. Federal Reserve helped eased credit worries.

Komatsu Ltd (6301.T) and other machinery stocks powered higher after Japan's May core machinery orders largely beat economists' consensus. [ID:nTKU003403]

The benchmark Nikkei .N225 gained 237.17 points to end the morning session at 13,270.27. It slid 2.5 percent on Tuesday to book its lowest close since April 15.

The broader Topix advanced 1.9 percent to 1,307.70. (Reporting by Aiko Hayashi)