Tokyo stocks rose Monday, led by buying of export-related issues on a weaker yen against the U.S. dollar after solid U.S. jobs data reduced prospects of an early interest rate cut.
The 225-issue Nikkei Stock Average ended up 354.23 points, or 0.92 percent, from Friday at 39,038.16. The broader Topix index finished 27.46 points, or 1.00 percent, higher at 2,782.49.
On the top-tier Prime Market, gainers were led by insurance, oil and coal product, and warehousing and harbor transportation service shares.
The dollar rose to the lower 157 yen range 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.
Stocks started the day higher as investors snapped up automakers and other exporters set to benefit from the yen's depreciation, extending their gains in the afternoon as the Japanese currency continued to slide, brokers said.
The market's upside was also supported by financial issues, which drew buying on hopes for improved profits on the back of rising Japanese long-term interest rates, analysts said.
But investors continued to keep a close eye on U.S. and Japanese central banks' policy meetings later in the week for cues on the future direction of their respective monetary policies.
"The key questions are whether the U.S. economy is truly robust and will interest rates remain high or start to decrease," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
The outcome of the Federal Reserve meeting could cause U.S. long-term Treasury yields to rise further, "triggering significant market movements and negatively impacting stocks" in the United States and Japan, Kamitani said.
