TOKYO, Aug 26 (Reuters) - Japan's Nikkei stock average rose to a fresh 10-month high on Wednesday, after positive data boosted confidence in a U.S. economic recovery, lifting exporters such as Honda Motor Co Toyota Motor Corp gained after a source with direct knowledge of the matter said the world's biggest automaker will cut its global production capacity to match lower sales.
The benchmark Nikkei rose 1.5 percent to 10,650.80, while the broader Topix gained 1.2 percent to 976.41. (Reporting by Elaine Lies)