TOKYO, July 12 (Reuters) - Japanese shares rose 2% on
Monday, with cyclical stocks leading the rebound on renewed
hopes of a swift global economic recovery, while industry
bellwether Yaskawa Electric jumped after raising its annual
The Nikkei share average climbed 2.05% to 28,513.09
by 0159 GMT, while the broader Topix advanced 2.04%
1,951.39. Both the indexes had fallen in the previous three
sessions, hitting their lowest in nearly eight weeks on Friday.
Japanese equities tracked Wall Street's strong finish on
Friday. The three major U.S. stock indexes rallied to record
closing highs at the end of last week, led by financials and
other economically focused sectors.
The U.S. market was led higher on Friday by economically
sensitive value stocks and that worked favourably for the
Japanese market, which has many value shares linked to the
global economy, said Kentaro Hayashi, a senior strategist at
"And Yaskawa Electric's strong earnings and an upward
revision of outlook have given a positive surprise to the
market," he said.
Shares of Yaskawa Electric, a robot maker seen as a
leading indicator on Japanese manufacturers' earnings trend,
rose as much as 7.57% after the company raised its annual
operating profit forecast by 29%. Peer Fanuc jumped
Makers of industrial machinery, housing instruments and
steel led the rebound after
Japan's machinery orders rose for a third straight month in May.
Fanuc was the top gainer among the top 30 core Topix names,
followed by Recruit Holdings.
Central Japan Railway Co was the worst performer
among the top 30 core Topix names with a drop of 0.95%, followed
by Nintendo, which slipped 0.57%.
All but airlines among the 33 sector sub-indexes
on the Tokyo exchange traded higher.
($1 = 110.1400 yen)
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)