(Updates for market close)
By Brigid Riley
TOKYO, Dec 10 (Reuters) - Japan's Nikkei share average
advanced on Tuesday as a softer yen lifted exporter shares,
while stocks with a connection to China soared on Beijing's new
promises of an "appropriately loose" monetary policy next year.
The Nikkei closed up 0.5% at 39,367.58, while the
broader Topix rose 0.3% to 2,741.41.
Automakers were among exporter shares that climbed as the
yen softened against the U.S. dollar.
The dollar was trading around 151.055 yen during
the afternoon session.
Toyota Motor ( TM ) advanced 1.3%, Suzuki Motor ( SZKMF )
soared 2.7% and Honda Motor ( HMC ) added 1.1%.
Fanuc ( FANUF ) and Yaskawa Electric ( YASKF ), up 3.1% and
2.7% respectively, and other shares with strong ties to China
rallied, after Beijing's surprise announcement on Monday that it
plans to implement a looser monetary policy and more proactive
fiscal policy.
Chip-testing equipment maker Advantest ( ADTTF ) was
among a portion of Japan's chip-related shares that tracked AI
leader Nvidia ( NVDA ) and other U.S. technology shares lower
after China's market regulator launched a probe into Nvidia ( NVDA ), but
recovered in afternoon trade.
The stock climbed 0.9%.
However, the Nikkei's rise was limited as investors
cautiously awaited the Federal Open Market Committee (FOMC) and
Bank of Japan (BOJ) monetary policy meetings next week.
"A cut from the Federal Reserve is baked-in, but there's
uncertainty about what the BOJ does. So if the latter hikes, a
stronger yen will hurt Japanese stocks," said Kyle Rodda, senior
financial market analyst at Capital.com.
Somewhat more hawkish guidance from the Fed regarding next
year's policy outlook could counterbalance the impact on the
dollar-yen pair, Rodda added.
U.S. CPI data and the BOJ's "tankan" survey are due later
this week.
Among other major stocks, chip equipment maker Tokyo
Electron ( TOELF ) added 3.5%, entertainment conglomerate Sony
Group ( SONY ) rallied 4.1% and Uniqlo-owner Fast Retailing ( FRCOF )
edged up 0.2%.