Tokyo stocks rose Monday on buying of technology shares, although gains were limited amid concerns over rising long-term interest rates in Japan.
The 225-issue Nikkei Stock Average ended up 253.91 points, or 0.66 percent, from Friday at 38,900.02. The broader Topix index finished 23.82 points, or 0.87 percent, higher at 2,766.36.
On the top-tier Prime Market, gainers were led by insurance, marine transportation and nonferrous metal issues.
The U.S. dollar moved little in the upper 156 yen range amid a lack of fresh incentives, dealers said.
Stocks were in positive territory throughout the day, as technology issues such as Screen Holdings and Advantest were boosted by a record high closing on the Nasdaq index late last week, while firm Asian markets additionally lifted sentiment, analysts said.
But the market was top-heavy on concerns about higher borrowing costs and housing loans amid rising yields on the 10-year Japanese government bond, analysts said.
The yield on Japan's benchmark bond briefly climbed 0.020 percentage point from Friday's close to 1.025 percent, its highest level since April 2012, amid growing speculation that the Bank of Japan could normalize its monetary policy faster than expected.
Market participants are focused on "how quickly the BOJ will move to normalize its monetary policy," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
Investors also refrained from chasing the upside ahead of a national holiday Monday in the United States, analysts said.
