Japan's Nikkei rises as weaker yen provides boost to exporters
TOKYO, June 16 (Reuters) - Japan's Nikkei share average rose on Monday even as the conflict between Israel and Iran continued, with a weaker yen supporting sentiment.
As of 0155 GMT, the Nikkei .N225 was up 0.9% at 38,164.07, while the broader Topix .TOPX rose 0.54% to 2,772.46.
"Investors were less worried about geopolitical tensions in the Middle East, and the market saw no need for additional sell-offs," said Kentaro Hayashi, senior strategist at Daiwa Securities.
"There is an optimism that the conflict will be contained with countries like the United States and Russia stepping in," he added.
The Nikkei fell on Friday after Israel launched strikes against Iran, and Wall Street ended sharply lower later in the day.
On Monday, Advantest 6857.T jumped 8% to provide the biggest boost to the Nikkei. The chip-making equipment maker, one of the largest components of the Nikkei, tends to be bought when the market bets the upside of the benchmark index.
Automakers rose on the back of a weaker yen, with Honda Motor 7267.T and Nissan Motor 7201.T rising 3.4% and 1%, respectively. Toyota Motor 7203.T was up 0.4%.
The yen fell at the end of the week as investors bought safe-haven assets, such as the U.S. dollar.
The greenback was last up 0.17% to 144.325 against the Japanese yen JPY=EBS.
A weaker Japanese currency tends to boost shares of exporters, as it increases the value of overseas profits in yen terms when firms repatriate the money to Japan.
Nippon Steel 5401.T rose 2.4% after U.S President Donald Trump approved its $14.9 billion bid for U.S. Steel X.N on Friday.
The sector for steel makers .ISTEL.T rose 1.77% to become the top performer among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.
The shipping sector .ISHIP.T rose 1.66% on expectations for rising freight rates amid the Middle East conflict. Kawasaki Kisen 9107.T rose 2.4%.
Of more than 1,600 stocks trading on the TSE's prime market, 66% rose and 28% fell with 4% trading flat.
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