Japanese shares at 3-1/2-month high as U.S. data boosts recovery hopes

SYDNEY, June 8 (Reuters) - Japanese stocks climbed to a
fresh 3-1/2-month high on Monday after a surprise increase in
U.S. employment gave investors further confidence of a swift
global economic recovery from a coronavirus-triggered slump.
The benchmark Nikkei average .N225 advanced 1.4% to
23,178.10 points, its highest closing level since Feb. 21.
All three major indexes on the Wall Street gained more than
2% on Friday, after the May employment report showed the U.S.
economy unexpectedly added 2.5 million jobs last month,
providing evidence that it was headed for a
quicker-than-anticipated recovery. .N Reflecting continued confidence in the revival of the global
economy, the safe-haven yen weakened further, with the
dollar/yen JPY=EBS hitting a 2-1/2-month high of 109.85 yen
late Friday.
As a weaker yen boosts Japanese manufacturers' profits made
abroad when repatriated, shares of export-oriented automakers
were in demand, with Nissan 7201.T and Mazda 7261.T jumping
7.8% and 5.7%, respectively.
Longer-term U.S. Treasury yields US10YT=RR surged on
Friday, providing a tailwind for Tokyo-listed financial stocks
.IINSU.T .IBNKS.T . Dai-ichi Life Holdings 8750.T climbed
6.5% and Mitsubishi UFJ Financial Group (MUFG) 8306.T added
4.5%. US/N
Elsewhere, oil-related companies were higher as oil prices
advanced after the Organization of the Petroleum Exporting
Countries (OPEC), Russia and allies agreed on Saturday to extend
record oil production cuts until the end of July. O/R
Japan's top oil and gas exploration companies Inpex 1605.T
and Japan Petroleum Exploration (Japex) 1662.T gained 5.1% and
3.8%, respectively, while oil wholesalers JXTG Holdings 5020.T
and Idemitsu Kosan Showa Shell 5019.T surged 2.7% and 3.0%,
respectively.
The broader Topix .TOPX rose 1.1% to 1,630.72, its highest
closing since Feb. 21, with all but three of the 33 sector
sub-indexes on the Tokyo exchange finishing higher.
The market, however, did not react to Japan's revised GDP
data that showed a slightly stronger-than-expected capital
expenditure.