Nikkei rises on Wall Street strength, corporate outlook

TOKYO, Feb 2 (Reuters) - Japan's Nikkei share average rose on Friday after Wall Street closed sharply higher overnight, while local investors scooped up stocks with robust outlook and better shareholder rewards.

The Nikkei had risen 1% to 36,370.68 by the midday break, adding 1.73% so far in the week.

The broader Topix climbed 0.58% to 2,548.72 and was on course to gain 2% for the week.

"The market fell more than expected in the previous session, so today's gain was a rebound from that," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

"Investors have already confirmed a positive trend in Japanese companies' outlook. What prompted them to buy stocks is better shareholder returns."

All three major U.S. stock indexes rose sharply overnight with the tech-heavy Nasdaq advancing the most, as investors looked to a spate of high-profile earnings.

Nasdaq futures extended gains in Asian trade and were last up 1%.

Nippon Television Holdings surged 22% after the broadcasting company said it would pay dividends to foreign shareholders who were not listed in the shareholder registry.

Peer TV Asahi Holdings surged 17% and Fuji Media Holdings jumped 12%.

Aozora Bank tumbled for a second session, falling 15% to hit a three-year low. The Tokyo-based lender this week flagged its first annual net loss in 15 years as it took massive loan-loss provisions for U.S. commercial property.

Konica Minolta surged nearly 10% after the maker of office equipment narrowed its net loss for the nine months through December.

Chip-making equipment maker Tokyo Electron rose 1.45% to become the biggest boost for the Nikkei.

Of more than 1,600 shares on the Tokyo Stock Exchange's prime market, 58% shares rose, 37% fell and 3% were flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)