TOKYO (Reuters) -
Japan's Nikkei stock average rose 1.2
percent on Monday, as exporters such as Kyocera Corp (6971.T)
rose on a weaker yen and after U.S. data eased concerns on Wall
Street about inflation and a near-term rise in interest rates.
Mitsubishi Motors Corp (7211.T) climbed 2.5 percent to 206
yen after the Nikkei business daily reported the Japanese
automaker will tie up with France's PSA Peugeot Citroen
(PEUP.PA) in electric vehicles, to supply technology and
next-generation batteries.
"A softer yen sparked hopes for upward earnings revisions
for some exporters," said Takahiko Murai, general manager of
equities at Nozomi Securities.
"But we have to brace for an eventual dramatic slowdown in
Japan, where the stock market and the economy depend on
overseas demand, considering recent declines in Asian shares
and rising inflation worries in emerging countries."
As of 0043 GMT, the benchmark Nikkei (.N225) gained 168.76
points to 14,142.49, after having lost 3.6 percent last week.
The broader Topix (.TOPX) climbed 1 percent to 1,385.05.
Murai said that as long as the dollar stays strong, a
sudden and large drop in the market is unlikely, but the Nikkei
average will likely have a hard time holding above 14,000.
U.S. stocks closed higher on Friday, helped by a government
report that showed underlying price pressures rose only
moderately in May, benefiting technology shares that had been
beaten down in recent days on worries about rate increases and
weaker overseas sales. (.N)
Japan's exporters also gained as the dollar fetched around
108.27 yen, holding near a four-month high. A softer yen boosts
exporters' overseas profits when they are brought back home.
Electronic parts maker Kyocera climbed 2 percent to 10,350
yen and Canon Inc (7751.T) added 2 percent to 5,550 yen.
Toyota Motor Corp (7203.T) rose 2 percent to 5,600 yen.
(Reporting by Aiko Hayashi; Editing by Brent Kininmont)