Japan's Nikkei rebounds on Wall Street's strong finish, weaker yen

Updates with midday close

TOKYO, March 3 (Reuters) - Japan's Nikkei share average rebounded on Monday from a sharp decline in the previous session, underpinned by Wall Street's strong finish last week and a weaker yen.

The Nikkei .N225 rose 1.14% to 37,580.02 by the midday break, after ending at a five-month low on Friday.

The broader Topix .TOPX climbed 1.27% to 2,716.16.

"The Nikkei fell to a level that prompted investors to scoop up stocks," said Kiyohide Nagata, chief strategist at Tokai Tokyo Intelligence Laboratory.

"The Nikkei could have continued falling today but it didn't despite weak demand from foreign investors. That is because there was a demand for corporate share buybacks."

Recruit 6098 rose 4.65% after the staffing agency announced on Friday that it would buy back as much as 3.5% of its outstanding shares.

Japanese stocks saw the largest foreign outflow in nearly five months in the latest week, hit by a stronger yen, rising inflationary concerns, and uncertainties over U.S. tariff policies.

U.S. tariff threats capped the Nikkei's gains last month despite local firms reporting a robust annual outlook.

The yen JPY=EBS fell to as low as 151 to the dollar on Monday, after hitting an over 2-1/2 month high last week. A weaker local currency tends to boost exporters' shares, as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.

Uniqlo-brand owner Fast Retailing 9983.T rose 2.13% to become the biggest boost for the Nikkei.

Toyota Motor 7203.T jumped 3.4% to become the biggest support for the Topix. Honda Motor 7267.T advanced 1.54%.

Seven & i Holdings 3382.T rose 1% after a report that the retail giant is finalising a plan for its president to step down and be replaced by its first foreign chief.

All of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with brokerages .ISECU.T rising 2.66% to become the top performer.