Stocks jumped Monday with backing from a rise in U.S. equities Friday and a dip in the yen.
The 225-issue Nikkei average jumped 304.59 points, or 1.37 percent, to end at 22,475.94 on the Tokyo Stock Exchange. On Friday, the key market gauge fell 30.47 points.
The Topix index of all first-section issues climbed 25.52 points, or 1.46 percent, to close at 1,774.69 after adding 1.72 points the previous trading day.
Investors took heart after Friday’s stronger-than-expected U.S. jobs data drove Wall Street higher, brokers said.
The yen’s easing against the dollar and the euro also brightened investor sentiment, they said.
Investors cited trade frictions between the United States and other major economies as a matter of concern.
The Nikkei’s topside was capped around the 25-day moving average, which stood at 22,542.61 as of Monday, Yoshihiko Tabei, chief analyst at Naito Securities Co., said.
Some investors refrained from active trading ahead of the Group of Seven leaders’ summit later this week, as well as the U.S.-North Korean summit and the U.S. Federal Reserve’s policy meeting next week, Tabei said.
“It’s difficult for investors to boost buying with many uncertainties abroad ahead,” an official of a midsize brokerage firm said.
Rising issues far outnumbered falling ones 1,737 to 309 in the TSE’s first section, while 38 issues were unchanged.
Volume fell to 1.482 billion shares from 1.605 billion shares on Friday.
Denso gained 4.83 percent after Toyota and the affiliated auto parts maker said Friday that they will consolidate the development and mass-production of key parts for electric vehicles at Denso.
Ito En added 6.91 percent after the beverage producer announced strong earnings projections Friday for the year to April next year and a share buyback plan.
Other major winners included mobile phone carrier Softbank Group and clothing retailer Fast Retailing.
On the other hand, game maker Nintendo plunged 6.32 percent after its recent rise.
Fanuc lost 0.91 percent after UBS Securities Japan Co. cut its investment rating and stock target price for the industrial robot producer.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average advanced 290 points to close at 22,510.