Nikkei up 0.8% after sell-off; exporters, banks rise

(Updates to midsession)

TOKYO, May 27 (Reuters) - Japan's Nikkei stock average rose 0.8 percent on Tuesday, rebounding from a two-week closing low hit the previous day, with stocks that had fallen sharply such as Toyota Motor Corp (7203.T) and banks regaining ground.

Major paper firms surged, with Hokuetsu Paper Mills Ltd (3865.T) jumping nearly 7 percent after Mitsubishi UFJ Securities raised its rating on Hokuetsu and three other rivals to "2" from "3", saying printing paper price hikes should drive up their earnings.

The benchmark Nikkei average .N225 added 112.43 points to end the morning session at 13,802.62. It slid 2.3 percent on Monday to book its lowest close in two weeks.

The broader Topix index gained 1 percent or 13.22 points to 1,357.40. (Reporting by Aiko Hayashi)