Tokyo stocks rebounded Wednesday, with the key Nikkei stock index gaining 1.17 as robust Chinese manufacturing data and strong economic growth in Australia, coupled with easing fear about the yen's rise lifted investors sentiment. Australia's gross domestic product climbed 1.2 percent from the first quarter, when it rose a revised 0.7 percent, the government announced Wednesday. The growth was far better than the median forecast for a 0.9 percent increase and brokers said investors found the news encouraging, after a broad scale sell off Tuesday. In addition, analysts said that China's purchasing managers' index rising to 51.7 from 51.2, again exceeding forecasts, lifted the market mood and with the yen depreciating to as low as 84.58 against the U.S. dollar and to 107.42 against the euro, the halt in the yen's rise also encouraged buying of oversold shares. 'Investors welcomed growing signs of a halt in the advance in the yen against the dollar, stemming from yen crosses after Australian growth data showed improvement and China's data came in strong,' said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities. The 225-issue Nikkei Stock Average rose 102.96 points from Tuesday to 8,927.02, despite hitting its lowest intraday level since April 30 last year at 8,796.45, meanwhile the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 6.73 points, or 0.84 percent, to 811.40. Some investors took heart in Ichiro Ozawa's statement Wednesday that if he becomes Japan's next prime minister, following success at the Sept. 14 Democratic Party of Japan (DPJ) Presidential election, he will intervene in currency markets to weaken the yen and take 'every measure' to keep the yen from rising. The former DPJ secretary general also pledged to introduce a 2 trillion yen (23.7 billion U.S. dollar) economic stimulus, more than double that planned by his opponent in the election race, Prime Minister Naoto Kan. However, strategists pointed out that political uncertainty at a time when Japan is truing to rein in its monumental debt, will ultimately weigh on the market. 'The market cannot cast aside uncertainty about Japan's political outlook, with the possibility of a political vacuum at a time when measures to deal with the economy and the strong yen are needed,' said Toshikazu Horiuchi, equity strategist at Cosmo Securities Co. 'Ozawa's comment on intervention is probably an additional positive factor, but the main catalysts for stock gains are signs of a stop in the yen's fast advance and the solid performance in other Asian stocks,' he said. Bargain hunters snapped up shares on the dip and high tech issues found favor having being sold sharply on Tuesday. Canon rose 1.2 percent to 3,465 yen and Kyocera gained 1.8 percent to 7,270 yen. Fanuc Ltd. meanwhile rose 2 percent to 9,200 yen. Hitachi Ltd. advanced 2.4 percent to 348 yen. The electronics maker may plan an initial public offering of its hard-drive unit by the end of the year, reports said. Hitachi later said it had not made any decision on an IPO. But automakers retreated with Mazda Motor Corp. falling 2.1 percent to 184 yen, the lowest close since Nov. 30. The automaker was lowered to 'hold' from 'buy' at Citigroup Global Markets Japan Inc. Toyota Motor Corp. also ended in negative territory, down 0.8 percent at 2,837 yen. Shipping lines were among Wednesday's notable gainers following Morgan Stanley increased its share-price estimates for Japan's top 3 shipping lines. Nippon Yusen K.K. advanced 1.9 percent to 330 yen and Mitsui O. S.K. Lines Ltd. gained 1 percent to 533 yen. Kawasaki Kisen Kaisha Ltd. advanced 1.3 percent to 317 yen. Storage battery maker GS Yuasa Corp. was a marked winner on today's market, surging 6.9 percent to 529 yen, the biggest gain since Feb. 12. The firm was rated 'strong outperform' in new coverage at Mitsubishi UFJ Morgan Stanley Securities Co. Some 1.63 billion shares changed hands on the Tokyo Exchange's First Section, up from Tuesday's volume of 1.59 billion shares, with advancing issues outnumbering declining ones by 862 to 649. 