TOKYO, May 13 (Reuters) - Japan's Nikkei share average

jumped to the highest in almost three months on Tuesday as the

U.S. and China agreed to temporarily slash harsh reciprocal

tariffs, easing concerns that their trade war could trigger a

global recession.

The Nikkei surged as much as 2.3% to 38,494.06

shortly after the open, a level last seen on February 21, before

entering the midday recess up 1.7% at 38,296.86.

Of the index's 225 components, 152 rose, compared to 73 that

fell.

The broader Topix gained 1.2%.

Under the truce announced on Monday, the U.S. will cut extra

tariffs it imposed on Chinese imports last month to 30% from

145% for the next three months, while Chinese duties on U.S.

imports will fall to 10% from 125%.

But the pause did little to address the underlying schisms

that led to the dispute, including the U.S. trade deficit with

China.

"For now, some of the uncertainty surrounding the global

trade situation has been relieved," said Maki Sawada, a

strategist at Nomura.

"Tariffs were slashed more than expected," she said. "U.S.

stagflation concerns have come down a notch."

Shipping was the top performer among the Tokyo

Stock Exchange's 33 industry groupings, climbing 4.2%.

Banking was next with a 3.8% advance, as a jump

in bond yields improved the outlook for investment and lending

income.

Pharma rebounded 3.6% following Monday's steep

drop as U.S. President Donald Trump moved to reduce prescription

drug and pharmaceutical prices.

Automakers gained 2.7% following a sharp drop in

the yen against the dollar overnight, which boosts the

value of overseas revenues.

Toyota ( TM ) climbed 3.7%, and Nissan ( NSANF ) advanced

3.2%.

Nissan ( NSANF ) announces financial results after the bell, with

national broadcaster NHK reporting the troubled carmaker plans

more than 10,000 additional layoffs globally.

(Reporting by Kevin Buckland; Editing by Mrigank Dhaniwala)