Tokyo stocks advanced Monday, led by the buying of auto and other export-related issues on a weaker yen against the U.S. dollar after solid U.S. jobs data.
The 225-issue Nikkei Stock Average ended up 196.14 points, or 0.54 percent, from Friday at 36,354.16. The broader Topix index finished 17.03 points, or 0.67 percent, higher at 2,556.71.
On the top-tier Prime Market, gainers were led by real estate, bank and transportation equipment issues.
The dollar remained strong in the lower 148 yen zone in Tokyo, following a surge on Friday on receding expectations for imminent interest rate cuts by the U.S. Federal Reserve after positive January employment data, dealers said.
Stocks were buoyed by the advances made by exporters, as a weak yen boosts their overseas profits when repatriated. Banking issues were also bought on rising Japanese long-term interest rates, raising prospects for an improvement in their earnings, brokers said.
The market was also supported by companies that reported positive earnings results Friday, including department store operator Isetan Mitsukoshi Holdings and electronics firm Panasonic Holdings.
However, rises were capped as investors were cautious ahead of more earnings reports due out this week, as they wait to see if firms try to increase their corporate value as requested by Tokyo Stock Exchange Inc., said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
"After gains had been made on anticipation over the bourse's reforms, market participants now want to confirm whether firms are actually actively engaged in responding to the bourse's initiative," Sawada said.
