(Updates with prices as of 0600 GMT)
By Brigid Riley
TOKYO, Oct 7 (Reuters) - Japan's Nikkei share average
jumped more than 2% on Monday, supported by a weaker yen and
Wall Street's gains on Friday after a stronger-than-expected
jobs report suggested the world's largest economy remained
resilient.
The Nikkei closed up 1.8% at 39,332.74 in a
widespread rally, after rising 2.39% earlier in the session. The
broader Topix rose 1.7% to 2,739.39.
U.S. nonfarm payrolls increased by the most in six months in
September and the unemployment rate fell to 4.1%, data showed on
Friday, buoying global investor sentiment.
The latest jobs report raises the chance of a soft landing,
and possibly earlier than expected, said Naka Matsuzawa, chief
macro strategist at Nomura Securities.
"If that happens, that's definitely a plus for Japanese
stocks, which are quite cyclical and sensitive to the global
economic recovery."
The U.S. dollar rallied following the jobs data, sending the
yen down to its lowest levels since mid-August. The softer yen
boosted shares of exporters, including automaker Toyota Motor ( TM )
which climbed 2.3%.
Investor sentiment was also lifted after the Dow posted a
record closing high on Friday and the Nasdaq ended with a more
than 1% gain.
The Nikkei was edging toward the 40,000-point range,
although it may be too early to try for the key level as
investors await further confirmation about the U.S. economy's
outlook, said Nomura's Matsuzawa.
The U.S. presidential election is also fast approaching,
taking place in early November.
Financial shares rallied on Monday, supported by a rise in
Japanese government bond (JGB) yields, with Resona Holdings ( RSNHF )
surging 8.7% to become the top percentage gainer on the
Nikkei.
Semiconductor and other major technology stocks also
performed solidly, including chip-testing equipment maker
Advantest ( ADTTF ), adding 3.1%, and AI-focused startup investor
SoftBank Group, up 2.2%.
Among other heavyweights, Uniqlo parent Fast Retailing ( FRCOF )
gained 2.5% to give the Nikkei the biggest bump higher.
(Reporting by Brigid Riley; Editing by Subhranshu Sahu and
Varun H K)