(Updates to midmorning)

TOKYO, Dec 3 (Reuters) - Japan's Nikkei average rose 1.5 percent on Wednesday as investors snapped up bargains such as Sony Corp (6758.T: Quote, Profile, Research) and other beaten-down exporters on cautious optimism that things may start to improve on Wall Street.

But automakers bucked the rising trend, with Honda Motor Co (7267.T: Quote, Profile, Research) down 4.4 percent in the face of a drop in U.S. sales and a report by the Nikkei business daily that it is scaling back its overseas expansion plans. [ID:nN02264408]

U.S. stocks rebounded on optimism after global bellwether General Electric (GE.N: Quote, Profile, Research) pledged to leave its dividend intact, while financial shares gained on a Federal Reserve move to extend several emergency measures integral to stabilising banks.

Additional encouragement came after U.S. automakers submitted survival plans and a top lawmaker predicted Washington would approve a bailout, saying that bankruptcy was not an option. [ID:nN021255]

"Expectations for a bailout for the Big Three automakers boosted Wall Street, and with Citigroup also basically taken care of, the safety net appears to have been spread," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

"Of course all the worries haven't been completely erased, but it appears as well that markets have become more resilient in the face of bad news than they were a few months ago."

Other market players said the fact that the dollar was hovering around 93 yen would keep gains limited. JPY=

The benchmark Nikkei .N225 gained 120.84 points to 7,984.53 yen after falling 6.4 percent on Tuesday, while the broader Topix .TOPX rose 1.3 percent to 797.03.