(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 rose 1.14% to 37,580.02 by the midday

break, after ending at a five-month low on Friday.

The broader Topix 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 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 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 ( FRCOF ) rose 2.13% to

become the biggest boost for the Nikkei.

Toyota Motor ( TM ) jumped 3.4% to become the biggest

support for the Topix. Honda Motor ( HMC ) advanced 1.54%.

Seven & i Holdings ( SVNDF ) 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 rising 2.66% to become the top

performer.