Japan stocks rebound as exporters, Pioneer gain

(Adds stocks, details)

By Aiko Hayashi

TOKYO, March 4 (Reuters) - Japan's Nikkei average rose 0.7 percent on Tuesday, rebounding from a six-week low in see-saw trade as investors snapped up exporters such as Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) on a halt in the yen's rise and Pioneer Corp (6773.T: Quote, Profile, Research, Stock Buzz) jumped on news of restructuring.

But worries over the course of corporate earnings helped put a lid on gains, with Sekisui House Ltd (1928.T: Quote, Profile, Research, Stock Buzz) tumbling nearly 5 percent after Japan's top home builder forecast a further fall in profit this year on sluggish demand and rising costs.

Falls in Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) and other banks showed that investors were still worried over the risk of further fallout from the global credit crisis.

"The recent market woes started from the U.S. subprime loan problems and the fact is that there's no easy way out in sight," said Tsuyoshi Segawa, an equity strategist at Shinko Securities.

The benchmark Nikkei average .N225 ended the morning session up 94.48 points at 13,086.66 after falling as much as 0.8 percent to a six-week low of 12,883.07. The broader TOPIX index also rebounded to close the morning up 0.3 percent at 1,275.45.

Investors picked up shares of battered exporters after the dollar cut some losses against the yen to trade around 103.47 yen <JPY=>. Rising risk aversion following a drop in global stocks had pushed the dollar to a three-year low of 102.6 yen on Monday.

Shares of Honda rose 2.3 percent to 3,140 yen, recovering from a six-week low in the previous session. Electronics parts maker Kyocera Corp (6971.T: Quote, Profile, Research, Stock Buzz) added 1.2 percent to 8,580 yen and industrial robot maker Fanuc Ltd (6954.T: Quote, Profile, Research, Stock Buzz) climbed 2.5 percent to 9,290 yen.