June 4, 2018 / 2:45 AM / a year ago

Nikkei rises to 1-week high on US jobs data; exporters gain on weak yen

TOKYO, June 4 (Reuters) - Japan’s Nikkei share average rose to a one-week high on Monday morning, tracking Friday’s Wall Street’s gains after May jobs data pointed to strength in the U.S. economy, while a weaker yen lifted shares of Japanese exporters.

The Nikkei soared 1.3 percent to 22,457.58 in midmorning trade, after hitting 22,489.66, the highest point since May 28.

Exporters such as automakers were bought after the dollar gained 0.15 percent to 109.660 yen following data showing that U.S. jobs growth gathered pace last month, adding to a string of update economic data.

“The market is relieved, after it saw some global concerns recently,” said Nobuhiko Kuramochi, a strategist at Mizuho Securities. “The Nasdaq’s gains and receding geopolitical concerns are also helping investors’ risk appetites.”

Toyota Motor Corp soared 3.5 percent, Honda Motor Co surged 2.5 percent and Nissan Motor Co advanced 1.5 percent.

Tech shares also gained ground after U.S. tech shares rallied on Friday. Chip-making equipment manufacturer Tokyo Electron gained 1.8 percent, TDK Corp jumped 4.6 percent and silicon wafer maker Shin-Etsu Chemical climbed 2.2 percent.

Analysts also said investors were relived after U.S. President Donald Trump announced the resumption of plans for a summit with North Korea’s leader Kim Jong Un on June 12.

Also calming investors’ nerve was Italy’s move to install a coalition government, removing the risk of a repeat vote dominated by debate on whether the country would quit the euro.

Japanese tea beverage drink maker Ito En jumped 6.7 percent after saying it expects an 11.5 percent rise in net profit of 14 billion yen for the year ending April 2019. It also said it will buy back up to 220,000 of its own shares, 0.25 percent of those outstanding, worth up to 1 billion yen.

The broader Topix gained 1.5 percent to 1,775.01. (Editing by Richard Borsuk)

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