Nikkei up 1.3 pct, buoyed by banks, exporters
TOKYO (Reuters) - The Nikkei average rose 1.3 percent on Monday as a softer yen buoyed exporters, while bank shares such as top lender Mitsubishi UFJ Financial Group (8306.T) climbed as investors picked them up after a recent sell-off.
Earthmoving equipment maker Komatsu Ltd (6301.T) jumped more than 4 percent after Nikko Citi raised its rating to "buy/high risk" from "hold/high risk," saying resource-rich countries were expected to continue to drive earnings in the face of mounting risk from a global slowdown.
Yutaka Miura, deputy manager of the equity information department at Shinko Securities, said short-term demand and supply was dictating the direction of the market in the absence of convincing domestic trading factors.
"Stocks are up on short-covering. Investors moved to pick up stocks as the Nikkei average got closer to the recent trough at the 12,900 level," he said.
The benchmark Nikkei .N225 added 168.16 points to 13,187.57, after losing 1.1 percent last week.
The broader Topix climbed 1.7 percent to 1,268.25.
The dollar rose to its highest level against the yen since early January on Friday, hitting 110.67 yen. It was down 0.2 percent to 110.26 yen on Monday.
Sony Corp (6758.T) rose 2.1 percent to 4,330 yen and industrial robot maker Fanuc Ltd (6954.T) added 2.5 percent to 8,910 yen.
Top lender Mitsubishi UFJ jumped 3.7 percent to 849 yen, while No.2 Mizuho Financial Group (8411.T) gained 2.6 percent to 477,000 yen.
Komatsu shares shot up 4.7 percent to 2,470 yen, making it one of the top positive contributors to the Nikkei 225.
(Reporting by Aiko Hayashi)
