Japan's Nikkei up 1.8 pct as financial worries ease

* Nikkei rebounds from 3-month closing low the previous day

* Banks gain on easing financial worries

* Stronger-than-expected data boosts machinery stocks (Adds stocks, details)

By Aiko Hayashi

TOKYO, July 9 (Reuters) - The Nikkei stock average rose 1.8 percent on Wednesday, rebounding from a three-month closing low the previous day, as financial shares such as Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) jumped after comments from the U.S. Federal Reserve helped eased credit worries.

Komatsu Ltd (6301.T: Quote, Profile, Research) and other machinery stocks powered higher after Japan's May core machinery orders largely beat economists' consensus. [ID:nTKU003403]

"A sense of relief has spread after Bernanke said he would continue to supply funds, though that's not really surprising," said Masaru Hamasaki, senior strategist at Toyota Asset Management.

"Still, it's hard for the market to gain further as the health of real economies is not good. The trading pattern of a sell-off and a rebound will probably continue for a while."

The benchmark Nikkei .N225 gained 237.17 points to end the morning session at 13,270.27. It slid 2.5 percent on Tuesday to book its lowest close since April 15.