Tokyo stocks rose Monday morning as exporter issues were sought on the back of a weaker yen against the U.S. dollar, after stronger-than-expected U.S. employment data for May reduced the prospects of early interest rate cuts.
The 225-issue Nikkei Stock Average gained 188.26 points, or 0.49 percent, from Friday to 38,872.19. The broader Topix index was up 19.34 points, or 0.70 percent, at 2,774.37.
The dollar rose to near the 157 yen line in Tokyo as the U.S. currency was bought on expectations that the Federal Reserve will keep interest rates elevated for longer after a jobs report released Friday showed a larger-than-projected growth in hiring, dealers said.
At noon, the dollar fetched 156.98-99 yen compared with 156.66-76 yen in New York and 155.41-43 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.0765-0769 and 168.97-169.08 yen against $1.0796-0806 and 169.25-35 yen in New York, and $1.0892-0894 and 169.28-32 yen in Tokyo late Friday afternoon.
Stocks rose moderately from the outset as the yen's depreciation prompted investors to snap up automakers and other exporters set to benefit when repatriating overseas profits.
The market was also supported by financial issues, which drew buying on hopes for improved profits on the back of rising Japanese long-term interest rates, although the upside was capped ahead of U.S. and Japanese central bank policy meetings later in the week, analysts said.
