Tokyo stocks open higher on Wall St. gains after weak nonfarm payrolls

Tokyo markets surged higher on Monday, following weaker-than-anticipated U.S. jobs data that dampened expectations of an immediate Fed rate hike. The Nikkei Stock Average climbed 1,363.51 points, or 2.08%, from Friday's close at 66,970.22. The broader Topix index also gained 25.68 points, or 0.63%, ending at 4,100.61.

Service, precision instrument, and nonferrous metal shares led gains on the Prime Market's top-tier stocks. Meanwhile, the U.S. dollar rebounded to around 158 yen in Tokyo, after dipping to the 156 yen range in New York following the release of the U.S. nonfarm payrolls. The euro also strengthened to $1.1561-1562 against the greenback, up from $1.1551-1561.

Expectations of a Bank of Japan interest rate hike pickup, following a policy meeting in July, pushed the benchmark 10-year Japanese government bond yield up 0.010 percentage point to 2.805%. Strong performances by Recruit Holdings and several artificial intelligence- and semiconductor-related stocks bolstered the benchmark Nikkei index. A weaker yen also lifted automobile shares, briefly pushing the Topix above its record high closing level.

However, gains were limited as no clear direction emerged for trading, according to dealers. The Topix and Nikkei indexes continued in a narrow trading range due to a lack of market cues. Strategist Wataru Akiyama from Nomura Securities Co. noted that increased speculation of broader sector expansion, coupled with robust earnings reports and upward earnings revisions due to a weaker yen, had lifted the Topix index.