* Manufacturers rebound as yen eases
* Construction stocks underperform after Monday surge
By Ayai Tomisawa
TOKYO, April 19 (Reuters) - Japan’s Nikkei share average soared on Tuesday morning, as a weak yen and a bounce in oil prices helped the market erase a sharp drop from the previous day.
The Nikkei rose 3.7 percent to 16,869.29 in mid-morning trade, after falling 3.4 percent on Monday.
Sentiment has also been supported by a rebound in oil prices, which edged up in early trading on Tuesday as an oil worker strike in Kuwait cut huge amounts of crude out of the supply chain.
“The bad news seems to have been priced in for now,” said Hikaru Sato, a senior technical analyst at Daiwa Securities, adding that investors will look out for companies’ earnings and forecasts, which start coming out next week, before they take new positions.
Major exporters rebounded sharply after tumbling on Monday, hit by a stronger yen and worries that earthquakes that hit southern parts of Japan could disrupt their supply chains.
Sony Corp surged 6.7 percent, Toyota Motor Corp gained 3.6 percent and Honda Motor Co rose 4.6 percent.
The dollar gained 0.2 percent to 109.10 yen, turning positive on the week after a fall to a one-week low of 107.75 on Monday.
Bank shares also gained ground. Mitsubishi UFJ Financial Group jumped 6.9 percent, Mizuho Financial Group soared 6.5 percent and Sumitomo Mitsui Financial Group surged 6.6 percent.
Construction-related shares, however, underperformed as investors took profit of gains made the previous day on hopes construction demand would help earnings after the recent earthquakes in Japan.
Nippon Chutetsukan KK, which makes ductile iron products, fell 1.6 percent after jumping 35 percent on Monday, Wakachiku Construction Co tumbled 5.6 percent after soaring 30 percent and Nippon Concrete Industries Co declined 6.4 percent after surging 20 percent.
The broader Topix rose 3.0 percent to 1,360.43, with all of its 33 subsectors in positive territory.
The JPX-Nikkei Index 400 added 3.1 percent to 12,308.40. (Editing by Sam Holmes)