By Taiga Uranaka

TOKYO (Reuters) - Japan's Nikkei stock average jumped 3 percent on Tuesday as Itochu Corp and other trading houses climbed on overnight gains in oil, while financials rose on relief major U.S. banks' earnings were not as bad as feared.

Shin-Etsu Chemical Co the world's biggest maker of silicon wafers, gained sharply after it reported a 13 percent rise in quarterly profit.

Toyota Motor Corp raced higher as investors saw the automaker and other recently battered blue-chip exporters as bargains.

After spending much of the day within a narrow range, the market accelerated its gains after trading in Japanese government bond futures was resumed in the late afternoon. A system glitch had forced the Tokyo Stock Exchange earlier to suspend trade of JGB futures, TOPIX index futures and other derivatives.

"The system trouble had an impact on the stock market as it took away arbitrage trading between bonds and stocks," said Masayoshi Yano, senior market analyst at Meiwa Securities, adding that the resumption of trade removed a lid on the market's gains.

"Investors took relief from U.S. banks' earnings, especially Citi. They were not as bad as feared," he said.

The benchmark Nikkei ended up 381.26 points at 13,184.96, while the broader Topix rose 2.8 percent to 1,287.74. Markets were closed on Monday for a national holiday.

Itochu jumped 8.6 percent to 1,075 yen, the biggest percentage gainer on the Nikkei. Mitsui & Co gained 6.6 percent to 2,170 yen.