Tokyo stocks rebounded Monday as exporter issues lifted the market on the back of a weaker yen, but caution ahead of earnings reports by major Japanese and U.S. tech companies prevented investors from chasing higher ground.
The 225-issue Nikkei Stock Average ended up 275.87 points, or 0.77 percent, from Friday at 36,026.94. The broader Topix index finished 31.83 points, or 1.27 percent, higher at 2,529.48.
Every industry category on the top-tier Prime Market gained, led by mining, oil and coal product and transportation equipment shares.
The U.S. dollar remained slightly firm around the 148 yen line in Tokyo, as the currency was bought on expectations that the interest rate gap between the United States and Japan would widen following a rise in U.S. Treasury yields last Friday.
The Nikkei benchmark closed above the psychologically important 36,000 line as the yen's depreciation prompted buying in a wide range of shares, analysts said. A weak yen boosts exporters' overseas profits when repatriated.
But the upside was limited ahead of earnings reports later this week from three Japanese semiconductor heavyweights, as well as U.S. tech giants, analysts said.
The upcoming reports from companies such as Apple Inc. and Amazon.com Inc. "created a mix of anxiety and anticipation in the market," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
