Japan's Nikkei rises on hopes US shutdown may end soon

By Junko Fujita

TOKYO, Nov 10 (Reuters) - Japan's Nikkei share average rose on Monday, tracking gains in U.S. stock futures as hopes grew that the historic U.S. government shutdown may end soon.

The Nikkei .N225 climbed 0.9% to 50,728.56 by 0143 GMT. The broader Topix .TOPX edged up 0.17% to 3,304.35.

"Market players bought stocks as they priced in gains for Wall Street shares later in the day, with hopes that the U.S. government shutdown will be over soon," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

"Investors were looking at U.S. stock futures, which were rising in Asian trading."

S&P EScv1 and Nasdaq futures NQc1 were last up 0.54% and 0.87%, respectively.

Bipartisan talks in the U.S. Senate to end the federal government shutdown appear to have taken a positive turn, Senate Majority Leader John Thune said, while the Senate moved towards a vote later on Sunday on reopening the government with funding measures through January.

In Japan, chip-testing equipment maker Advantest 6857.T rose 3.71%, chip-making equipment maker Tokyo Electron 8035.T was up 4.36% and technology investor SoftBank Group 9984.T gained 2.24%.

"These three stocks lifted the Nikkei on Monday, but their momentum was not as strong as last month. However, smaller chip-related shares surged, showing investors' strong appetite for technology stocks," said Shimada.

Chip-maker Kioxia Holdings 285A.T jumped 12%. Semiconductor equipment maker Towa 6315.T surged 23.77% to a near daily limit high.

Flea market app operator Mercari 4385.T jumped 14.23% after posting a 70% gain in net profit for the quarter ended September.

Honda Motor 7267.T fell 4.6% after Japan's second-largest automaker slashed its full-year profit forecast by 21% on Friday.

Its peer Toyota Motor 7203.T lost 0.74% and Mazda Motor 7261.T slumped 5%.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 68% stocks rose, 27% fell and 4% traded flat.