Tokyo stocks rose Monday morning after the Bank of Japan's Tankan survey showed a better-than-expected improvement in sentiment among major manufacturers.
The 225-issue Nikkei Stock Average gained 104.32 points, or 0.26 percent, from Friday to 39,687.40. The broader Topix index was up 13.71 points, or 0.49 percent, at 2,823.34.
The U.S. dollar moved narrowly mostly in the upper 160 yen range amid vigilance about a possible yen-buying intervention by Japanese authorities in response to the yen's rapid depreciation, dealers said.
At noon, the dollar fetched 160.89-91 yen compared with 160.84-94 yen in New York and 160.92-94 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.0753-0757 and 173.01-09 yen against $1.0708-0718 and 172.32-42 yen in New York and $1.0696-0698 and 172.13-17 yen in Tokyo late Friday afternoon.
Stocks climbed after the BOJ's June Tankan survey showed business sentiment among major Japanese manufacturers rose to 13 from 11 three months earlier, beating the average market forecast in a Kyodo News survey of an improvement to 12.
But shares gradually pared some gains as investors digested the survey results that also showed a downward revision of the net profit earnings outlook, brokers said.
While investors welcomed the improved business confidence among major manufacturers, "the market was top-heavy as companies maintained a cautious stance on the earnings outlook," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
